China Seeking Flexibility On Phase One Trade Deal Agriculture Purchases

China is seeking flexibility on trade targets
Corn weekly export inspections came in at 562,000 metric tons
March wheat futures tested and held our support pocket in the mid 540’s
Grain futures market update

Grain futures market update

Corn Futures (March)

Fundamentals: March corn futures were under pressure yesterday as buyers seemed unwilling to step in front of the uncertainty surrounding coronavirus. Weekly export inspections came in at 562,000 metric tons, towards the low end of estimates.

Fundamentals: March corn futures were under pressure yesterday as buyers seemed unwilling to step in front of the uncertainty surrounding coronavirus. Weekly export inspections came in at 562,000 metric tons, towards the low end of estimates.

Technicals: March corn futures tested and held the low end of support, we have had that defined as 375-377 ¾, this is a MUST HOLD pocket for the bull camp. A break and close below opens the door for a potential retest of the contract lows at 365 ¾. Markets are firm in the early morning trade, but the bulls have their work cut out for them. 384 ¾-387 ¼ is our pivot pocket. If the bulls can achieve consecutive closes above this pocket, we could see buyers getting more aggressive. We want to be more optimistic, but the chart does not warrant it, our bias remains at Neutral. 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 (March)

Fundamentals: Soybeans managed to rally yesterday on technical relief and good export inspections, 1,356,000 metric tons. The USDA also announced a sale of 130,000 metric tons of beans to Egypt. Reports that China is seeking flexibility (already) on trade targets amid coronavirus added a wet blanket on things midday, but futures are continuing to stabilize in the early morning trade.

Technicals: the market is recovering well this morning on broad-based buying across nearly all of the markets. 875-880 is our pivot pocket that the bulls need to see consecutive closes above. If they can achieve this, we could see short covering add relief towards 899-902 ½. We would not be looking for much more than that in the very near term.

Bias: Neutral/Bullish

Previous Session Bias: Neutral/Bullish

Resistance: 899-902 ½***, 920-924***, 933 ¾-937 ¼***

Pivot: 875-880****

Support: 865-867 ¾**, 841 ½****

 

Chicago Wheat (March)

Technicals: March wheat futures tested and held our support pocket in the mid 540’s yesterday, this pocket contained the 50-day moving average, key retracement, previously important price points, and trendline support from the contract lows. In yesterday’s report we wrote: “If you’ve been short, this is an area to reduce exposure. We have had an outright Bearish bias but are moving that to Bearish/Neutral to start this week’s trade.”. We will be looking to put that short exposure back on against technical resistance. 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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