Grain Traders - USDA Leaves Soybean and Corn Balance Sheet Unchanged

Grain futures market update

Grain futures market update

Corn Futures (May)

Fundamentals: May corn futures managed to grind higher on the back of a friendly outside market and a DeJa’Vu USDA report that was unchanged from the previous month. The March 31st report will undoubtedly be the big report of the month, this will cover quarterly stocks and prospective planting numbers. Outside market money flow will continue to be a focal point for the broader commodity space.

Technicals: The market managed to work higher yesterday but is now retreating to our pivot point, 373 ¼-375. The bulls must defend this on a closing basis, a failure to do so could open the door for new contract lows.

Bias: Neutral/Bullish
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 (May)

Fundamentals: Soybeans tried to rally yesterday bit closed well off the highs as the USDA left the balance sheet unchanged, shifting focus back towards the outside markets for now. The next report will be the March 31st quarterly stocks and prospective plantings report, this will undoubtedly be significantly more meaningful for the market.

Technicals: Previous support has become technical resistance, that comes in from 878-880. The bulls have traded above here but failed to hold that momentum through the close. If the bulls can achieve consecutive closes back above this pocket, we could see the market fill the Sunday night gap and work back towards the psychologically significant $9.00 handle. A failure to do so keeps the bears in control and leaves the door open for a potential retest of the contract lows from May, 854.

Bias: Neutral/Bullish

Previous Session Bias: Neutral/Bullish

Resistance: 888 ½-889 ¾***, 908 ¼-912 ½****

Pivot: 878-880

Support: 867**, 850-854****
 

Chicago Wheat (May)

Technicals: Chicago wheat futures managed to rally alongside the outside markets but failed to attract any new buyers as we approached resistance. Technical resistance comes in from 527 ½-530. This pocket represents the 50% retracement (middle of the range) and the 200-day moving average. Consecutive closes above this pocket could start to neutralize the bearish technical landscape.

Bias: Bearish/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.

About the Author

Blue Line Futures, is a leading futures and commodities brokerage firm offering discounted personalized service and futures and commodity research.