Wheat futures rally in early morning trade on relatively light volume

March corn futures spent much of last week trading sideways
January soybeans had a technical breakdown last week
Grain futures market update

Grain futures market update

Corn Futures (March)
 

Fundamentals: With little new news on the wire, March corn futures spent much of last week trading sideways. We are anticipating this week to be relatively quiet with Thanksgiving on Thursday. Exports improved last week; we will want to see that continue in this Friday’s report. The weekly Commitment of Traders report showed funds sold another 12,610 contracts, expanding their net short position to 123,530.

Technicals: 375 is the line in the sand that the bulls must defend on a closing basis, this acted as support in August, before breaking to contract lows. It then acted as support again in September, after rallying off contract lows. A break and close below.....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 had a technical breakdown last week after reports of the Phase 1 trade deal being delayed, this shouldn’t come as a big shock. The market seemed to see price in a regression, which could mean we see increased tariffs on December 15th. With Thanksgiving on Thursday, weekly export sales will be released Friday. Last week’s Commitment of Traders report showed funds sold 12,598 contracts, trimming their net long position to just 18,452 contracts.

Technicals: The technical breakdown in soybeans has taken prices back below the psychologically significant $9.00 handle, but the significant technical level come in from 894-895 ¾. This pocket represents the 50% retracement from the contract lows to the recent highs, it also represents other previously important price points. If the bulls cannot defend support, we could see the selling accelerate and take prices back into the mid-870s.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 909 ½-913***, 928 ½-930 ¼**, 940-941 ½***

Support: 894-895 ¾**, 879-882**, 865-869 ½****

 

Chicago Wheat (March)

Fundamentals: With December options off the board, we are focusing on the March contract which is catching a bid in the early morning trade. Friday’s Commitment of Traders report showed that funds sold 2,441 contracts, putting them net short 2,049. This is a neutral position, especially when compared to KC wheat where funds are short over 26,000 contracts.

Technicals: Wheat futures are rallying in the early morning trade on relatively light volume. First resistance this week comes in from 525 ¾-529 ¼. This pocket represents highs from earlier in the month and a key retracement. A close above here will likely take us above 538 ¼-540,

 

About the Author

Blue Line Futures, is a leading futures and commodities brokerage firm offering discounted personalized service and futures and commodity research.