Grain Traders Look Forward To Crop Progress This Afternoon

Crop Progress will be out this afternoon
Cold-weather looks to persist through the weekend for some areas
Grain traders fundamental focus is largely on the harvest
Grain futures market update

Grain futures market update

Corn Futures (December)

Fundamentals: Last week, corn futures traded both sides of unchanged but finished fractionally higher. Crop Progress will be out this afternoon, after that, much of the attention will turn towards Friday’s WASDE report. We will continue to compile estimates and have those for you by mid-week. Friday’s Commitment of Traders showed that funds sold 9,322 contracts from October 22nd to October 29th, expanding their net short position to 85,337.

Technicals: The market continues to resemble a stick in the mud around the mid 380’s, keeping many of our support and resistance pockets intact. Technical support comes in from 377-381 ½, this was tested and held last week. This pocket represents the breakout point from the Quarterly Stocks report on September 30th, support from the October 10th USDA report, a key retracement, and the 50-day moving average...Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed to you each day. 

 

Soybeans (January)

Fundamentals: January soybeans were under pressure in the first half of last week’s trade on the cancellation of this month’s global summit in Chile, due to protests in Santiago. Both sides seemed hopeful that they would have been able to sign a Phase 1 deal at the summit (as if there’s nowhere else they can meet). Headlines around trade will continue to have an effect on the market, but perhaps a more meaningful effect as we are now less than a year away from the election (November 3rd, 2020). Friday’s WASDE report will be the big-ticket item this week, we will have estimates out by mid-week. Friday’s Commitment of Traders report showed funds bought 3,503 contracts from October 22nd to October 29th, expanding their net long position to 72,325 contracts.

Technicals: January soybeans tested and held our technical support pocket perfectly last week, we had that defined as 921-928 ½, labeling it as a buying opportunity; whether that be bullish traders initiating positions or shorts covering. The market is now approaching our pivot pocket from 940-941 ½...Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed to you each day. 

 

Chicago Wheat (December)

Fundamentals: Chicago wheat futures worked lower for much of last week before finding technical buying in the final two days. Friday’s Commitment of Traders report showed that funds sold 7,057 contracts from October 22nd to October 29th. Money flow and technicals have been the key catalyst for us, but we are excited to get some new fundamental news from Friday’s WASDE report; we will have estimates out by mid-week.

Technicals: The market tested and held our 4-star support pocket on Thursday, we defined that as 500-5006 ¼. We mentioned in our weekly “2 Minute Drill” that it could lead to a retest of 515 ¾ and a failure...Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed to you each day. 

 

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