Grain Traders Look To Friday WASDE Report For Clues

Corn futures continued to bleed lower yesterday
Traders Anticipate Friday’s WASDE report
Early estimates for Soybean yield come in near 46.6 bushels per acre, down from 46.9 in the previous report.
Grain futures market update

Grain futures market update

Corn Futures (December)
 

Fundamentals: Corn futures continued to bleed lower yesterday, marking the fourth consecutive lower close. Harvest pressure and concerns over dismal demand continue to be a thorn in the side of the bull camp. The weekly ethanol report and exports report will be watched closely, but traders will quickly move past that and look to Friday’s WASDE report as the big-ticket item. Early estimates are yields to be near 167.2 bushels per acre, down 1.2 from the previous report. Production estimates are coming in near 13.604 billion bushels, down from 13.779 in last month’s report.

Technicals: The market officially tested our first support pocket; we have defined that as 377-381 ½. We still believe this pocket represents value on the first test but need to see more of a springboard reaction. A close below here would not only neutralize our bias, but it would be near term bearish too, opening the door.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: Soybeans gave back some ground yesterday as some traders look to tighten up positions ahead of Friday’s WASDE report. Early estimates for yield come in near 46.6 bushels per acre, down from 46.9 in the previous report. Production is estimated to be at 3.512 billion bushels, down from the 3.550 in last month’s report.

Technicals: Yesterday’s failure at our pivot pocket led to moderate selling pressure. The bulls need to see a close above 940-941 ½ to encourage another leg higher. If the market can close above this pocket, we could see a swift run at the recent highs (also the June highs) near.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: Wheat was able to buck the trend and work higher yesterday, spilling over into strength in the early morning trade. Friday’s WASDE report is the big-ticket item, earl estimates are for US ending stocks to be near 1.030 billion bushels, down from 1.043 in last months report. World ending stocks estimates range from 285.1-288.5 million metric tons.

Technicals: The market has moved back above our pivot pocket in the early morning trade, the bulls need to see this confirmed when we get more participation on the floor open. Consecutive closes above here could take us to retest our technical resistance pocket, 538 ¼-543.

Bias: Neutral/Bearish

Previous Session Bias: Neutral/Bearish

Resistance: 525 ¾-531 ½**, 538 ¼-543****

Pivot: 515 ¼-517 ¼

Support: 500-506 ¼****, 485 ½-489 ¼***..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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