Corn Futures (March)
Fundamentals: March corn futures finished the day under moderate pressure, mostly due to a technical failure at the gap from Sunday night. Export sales this morning came in at 1,234,700 metric tons, down 7% from last week but 49% above the 4-week average.
Technicals: March corn futures filled the gap and failed at our resistance pocket; we had defined that as 384 ¾-387 ¼. In yesterday’s report we moved our bias from Bullish/Neutral to outright Neutral. If the bulls cannot achieve consecutive closes above the gap, you could make the case that the bears have an edge near term. Significant support comes in... 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.
Fundamentals: The market is making new lows for the move in the early morning trade as global markets come back under fire. With little new news, much of the recent selling pressure is technical in nature. Weekly export sales came in at 469,700 metric tons, 41% lower than last week and 11% below the 4-week average.
Techncials: In yesterday’s report we wrote about the Tuesday night/Wednesday morning reversal, saying that this was “a potential stop hunt to shake out the weak shorts before taking the market lower. We had a Neutral/Bullish bias in yesterday’s report but have put that the Neutral for now. If the bulls cannot find strength on the floor open (where we get more participation), we wouldn’t be surprised to see the market retreat towards 879-882 ¾.”. We would not be surprised to see more stops ran below the bottom end of this pocket but think there is value on the first test. The RSI is at 23.9, we were near 18 when we bottomed out in December.
Previous Session Bias: Neutral/Bullish
Resistance: 920-924***, 933 ¾-937 ¼***
Pivot: 899-902 ½
Support: 879-882 ¾****
Chicago Wheat (March)
Fundamentals: Weekly export sales came in at 646,300 metric tons, down 7% from last week but 49% higher than the 4-week average.
Technicals: Wheat futures are breaking below technical support in the early morning trade, we have had that defined as 557 ¼-559 ½. IF you have been short, this is a spot to consider reducing. If the bulls cannot defend this pocket on a closing basis, we would look for a run towards 542-545 ¼. This pocket represents the 50-day moving average, support at the beginning of the year, and trendline support from contract lows in September. 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.