Corn Futures (March)
Fundamentals: Corn futures retreated yesterday, remaining within the technical range ahead of this morning’s USDA report. Though this isn’t typically a market-moving report, the possibility for volatility shouldn’t be ignored. U.S. carryout is what we will be watching closely, estimates come in from 1.788-1.942 billion bushels, 1.864 being the average, down from 1.892 in January. Export inspections yesterday morning came in at 769,000 metric tons, within the range of expectations.
Technicals: Corn technicals are little changed. A break and close below 375-377 ¾ would mark lower lows, opening the door for a drop towards contract lows at 365 ¾. The bears have the advantage until the bulls can achieve consecutive closes back above 387-388 ¼. 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: March soybean futures caught a bid yesterday morning on the back of rumors that China was set to purchase 2-3 cargoes of new crop beans. Export inspections came in at 604,000 metric tons, below the low end of expectations. Estimates for ending stocks come in from .320-.520 billion bushels, the average being .443, down from .475 in January.
Technicals: March soybeans worked up against our resistance pocket yesterday but failed to attract enough new buyers to stage a serious breakout, we have defined that pocket as 888 ¼-890 ½. The bears have the advantage until we see consecutive closes above resistance. 875-880 is our pivot pocket, a close below here would be bearish and could open the door for another leg lower.
Previous Session Bias: Neutral
Resistance: 888 ¼-890 ½**, 899-902 ½***, 920-924***
Support: 865-867 ¾**, 841 ½****
Chicago Wheat (March)
Technicals: March wheat futures softened up yesterday, continuing the formation of a bearish head and shoulders pattern. Prices have seen some follow-through selling in the overnight/early morning trade, bring us into our first support pocket, 548-551. A break and close below here could accelerate the selling, taking us into the mid 520’s in a relatively short amount of time. 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.