Did We Just See The Bottom In Grain Markets?

Concerns of ethanol plants coming to a screeching halt
Soybean futures caught a bid on spillover momentum from the meal market
Chicago wheat futures continued to skyrocket higher
Grain futures market update

Grain futures market update

Outside Markets Main Driver of Grain Prices

Outside Markets: Stock indices are higher this morning, at times trading to the limit up circuit breaker (5%). The oil market is firm as of writing this, but over $1 off the highs.

Corn Futures (May)

Corn futures traded in a relatively tight range yesterday as the market tries to catch its breath. Does that mean the bottom is in? No. The technical failures and tails left on the chart from Thursday and Friday are still concerning. A near term consolidation could set up for a Bear Flag. The bears have control until we see consecutive closes back above 354-356 ¾. The lingering fundamental concern is the ethanol demand coming to a screeching halt.

Bias: Neutral/Bearish

Previous Session Bias: Neutral

Resistance: 363 ½-365 ¾****, 373 ¼-375**

Pivot: 354-356 ¾

Support: 330-332
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Soybeans (May)

May soybeans extended their rally yesterday on the back of hopes for better demand and potential port disruptions in South America. The market is giving back some of those gains in the early morning trade as recent buyers look to capitalize on a heck of a run over the last three sessions. Resistance remains intact from 888 ½-889 ¾. This pocket represents the gap from March 6th, along with other previously important price points. There’s not a log of significant support until we get back down to 854-854 ¾.

Bias: Neutral/Bullish

Previous Session Bias: Neutral/Bullish

Resistance: 888 ½-889 ¾***

Pivot: 875

Support: 854-854 ¾***, 842-845 ¼***, 820-821**

 

Chicago Wheat (May)

May wheat ran up to our 4-star resistance pocket but couldn’t get out above it, we have had that defined as 564-568 ½. This pocket represents a key retracement, along with other previously important price points. We wouldn’t be surprised to see some relief take us back in to the low to mid 540’s but the bulls now have the technical advantage and we would consider using a pullback to these levels as a buying opportunity.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 564-568 ½****

Pivot: 550-551 ½

Support: 540 ½-542 ½***, 523-528 ½***, 488 ¼-494****

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