Corn Futures (March)
Fundamentals: March corn futures continued to grind higher yesterday, mostly on the back of short covering from funds. Informa Economics released their estimates for the 2019 crop, corn production came in at 13.568 billion bushels with a yield of 167.4. This compares to the USDA estimates of 13.661 and 167.0, respectively.
Technical: The market ran towards our resistance pocket from 388 ½-390 ½ but failed at the upper end. This pocket contains previously important price points, including the breakout point from the September 30th quarterly stocks report, and then support during the October USDA report. If you have been long the market, this is the spot to consider reducing in preparation for a pullback. If you’re looking to do some hedging, also a good time to consider some sales. 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.
Previous Session Bias: Neutral/Bullish
Resistance: 388 ½-390 ½***, 407-411 ¾****
Support: 377-381***, 365-365 ¾****
Fundamentals: January soybean futures continued to climb higher yesterday; we are attributing that to continued short covering. The positive headlines are starting to fizzle out, this could lead to a bit of a pullback into next week’s option expiration. Informa Economics released their 2019 crop estimates, they have soybean production at 3.540 billion bushels with a yield of 46.8; little change from the USDA’s 3.550 and 46.9
Technicals: From the start of the week we’ve been talking about a potential short-covering rally towards 928 ½-930 ¼, this was achieved in yesterday’s session. If you had been long, this is the spot to reduce. If you want to be short or are looking to do some hedging, this is the spot to consider doing it. If resistance continues to hold on a closing basis we could see the market work back towards 907-911 ½.
Chicago Wheat (March)
Technicals: Chicago wheat futures ran higher again yesterday but failed to take out he previous day’s highs with any conviction. The market is slightly overbought, and the broader grain complex is softer in the early morning trade, which could feed on itself and add additional pressure once the floor opens. Our pivot pocket remains intact from 544-546 ½. A break and close below here could open the door for a retest of 525 ¾-529 ¼. If you want to be short wheat, this is a spot to look for a short term, healthy pullback. 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.