Trade Headlines Will Continue To Be A Wildcard For Soybean Futures

March corn futures down yesterday on technical weakness
Weak Corn demand has continued to be the thorn in the side of the bull camp
Traders will be focusing in on next week’s USDA report
Grain futures market update

Grain futures market update

Corn Futures (March)
 

Fundamentals: March corn futures gave back ground yesterday on technical weakness along with the lack of any bullish headlines. Export sales this morning came in at 546,100 metric tons; down 32% from last week and 18% below the 4-week average. Weak demand has continued to be the thorn in the side of the bull camp, the MUST see this change in order to get the market moving north again. The next big-ticket item will be next week’s USDA report, we will have estimates out by Monday morning.

Technicals: We were optimistic and upbeat in yesterday’s report, but the market couldn’t get anything going in the midst of technical headwinds. The inability to break out above our pivot pocket, 381 ¼-382 ¾ is discouraging and a bit of a caution flag near term. A continued failure could take us back to the lower end of the recent range, 375-376 ¾. 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 managed to rebound yesterday on positive trade headlines and technical relief. Export sales this morning came in at 683,800 metric tons, down 59% from last week and 55% below the 4-week average. Trade headlines will continue to be a bit of a wild card, outside of that, traders will be focusing in on next week’s USDA report, we will have estimates out by Monday morning.

Technicals: The market worked into our pivot pocket yesterday, we defined that as 879-882. If you had bought at lower prices, this would be a spot to reduce at the very least as the bears are still in control. If you’re more optimistic and have multiple contracts on you can consider keeping a core long position. A close above the pivot pocket could lead to more relief, taking prices closer to 894-895 ¾. 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.

Bias: Bullish/Neutral

Previous Session Bias: Bullish/Neutral

Resistance: 894-895 ¾**, 909 ½-913***

Pivot: 879-882

Support: 865-869 ½****

 

Chicago Wheat (March)

Fundamentals: March wheat futures started yesterday’s session lower but managed to claw into positive territory by the close, carrying over into moderate strength in the early morning trade. Export sales this morning came in at 228,100 metric tons, down 63% from the previous week and 45% below the 4-week average.

Technicals: The market is treading water in our pivot pocket; we have defined that as 525 ¾-529 ¼. If the bulls can reclaim ground and close above here, we could see a run back at the recent highs. A failure here gives the bears a slight advantage. Support comes in from 515 ¼-518 ¾. 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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