Commodities Catch Bid Higher As Coronavirus Eases

Grain futures market update

Grain futures market update

Corn Futures (March)

Fundamentals: March corn futures finished yesterday’s session on higher ground, but there wasn’t enough new news to propel the market out above technical resistance. Outside markets are firming as concerns surrounding coronavirus ease.

Technicals: Corn futures rallied yesterday but could not find the momentum to break through our pivot pocket, 384 ¾-387 ¼. If the bulls can achieve consecutive closes above this pocket, we could see buyers getting more aggressive. The other silver lining is we are defending and holding higher lows from last month, 375-377 ¾. A breakdown below this pocket would likely take us to retest contract lows at 365 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: Neutral

Previous Session Bias: Neutral

Resistance: 392-394 ¼***, 407 ¾-411 ¾****

Pivot: 384 ¾-387 ¼

Support: 375-377 ¾***, 365-365 ¾****

 

Soybeans (March)

Fundamentals: Soybean prices rallied yesterday, much of which was on the back of technical relief. Outside markets have stabilized as concerns over coronavirus ease, spilling into support for commodities.

Technicals: March soybean futures rallied yesterday but failed to achieve that conviction close above technical resistance, finishing the day in our pivot pocket, 875-880. Prices are grinding higher in the early morning trade, but the bulls will want to see follow through when we get more participation from the floor open. 888 ¼-890 ½ is resistance, this was the breakdown point from January 30th.

 

Chicago Wheat (March)

Technicals: March wheat futures rallied back into our pivot pocket yesterday, we have defined that as 559 ½-562 and believe it to be an opportunity to sell against. The market is firming up this morning and retesting that pocket again. Being in the bear camp, we want to see this pocket defended on a closing basis. A conviction close above may warrant another leg higher.

Bias: Bearish/Neutral

Previous Session Bias: Bearish/Neutral

Resistance: 573 ½-578 ¾***, 598-601 ¾***

Pivot: 559 ½-562

Support: 542-545 ¼****, 525-528***

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