Corn Futures (May)
Fundamentals: Corn futures made new contract lows on Friday but managed to recover and close in positive territory. Outside markets will be a focal point this week, if we see the nerves settle and markets recover, we expect to see that help the commodity sector. Friday’s Commitment of Traders report showed funds sold 34,049 contracts, expanding their net short position to 95,510.
Technicals: The bear camp remains in control until the bulls can achieve consecutive closes above technical resistance. Previous support now becomes resistance, which comes in from 370-374 ¾. If the bulls can achieve consecutive closes above this pocket, potentially we start to see additional short covering. We are in uncharted territory which makes finding meaningful support more difficult, so take it with an extra grain of salt.
Fundamentals: May soybean futures saw a choppy and volatile trade in the back half of last week as market participants try to grapple with the effects of coronavirus. Friday’s Commitment of Traders report showed funds bought 14,634 contracts, trimming their net short position to 75,130. Outside markets will be the focal point this week.
Technicals: Soybeans tested and held our 4-star support pocket three times last week, keeping it intact from 878-880. 898 ¼-900 is first resistance, consecutive closes above here opens the door for an extension towards 914-917.
Previous Session Bias: Neutral
Resistance: 898 ¼-900**, 914-917****, 928-930 ¾***
Pivot: 890-890 ¾
Support: 878-880****, 850-854****
Chicago Wheat (May)
Technicals: Chicago wheat futures rallied hard off of our support pocket from 510-512 ¼, on Friday. Taking us back to the breakdown point, which happens to be a key retracement, and the 200-day moving average. This will now act as resistance, coming in from 523-528 ½. If the bulls can achieve consecutive closes above here, perhaps we see additional relief into the low 540’s.
Previous Session Bias: Bearish
Resistance: 523-528 ½***, 540 ½-542 ½****
Support: 510-512 ¼***