Corn Futures Flirt with Last Week's Contract Lows

April 29, 2020 09:50 AM
May corn goes into delivery after the close
Tension in China soybean trade deal
Grain futures market update

Grain futures market update

Corn (July)

Fundamentals: July Corn futures retreated yesterday, flirting with the contract lows from last week, 309. May corn goes into delivery after the close, that could trigger some short covering and offer some near-term relief for the back half of the week. Do not confuse a relief rally with a call for the bottom. There are still a lot of fundamental and technical headwinds that will likely keep the bears in control and the upside limited.

Technicals: The market is a stones throw away from contract lows and we wouldn’t be terribly surprised to see it tested today. If you want to be a buyer of corn, May Corn futures going into delivery after the close may be a good catalyst to give it a shot in the very near term.

Bias: Neutral/Bearish

Previous Session Bias: Neutral/Bearish

Resistance: 330-333****, 343 ¼-344 ¾**

Pivot: 316-317 ¾

Support: 308 ¼-310*** 298 ¾-301 ¼**


Soybeans (July)

Fundamentals: Soybean futures continued to bleed lower yesterday as market participants saw little new news to offer support to prices. President Trump said that the US will bill China at least $160 billion, though it’s warranted, it doesn’t bode well for a follow through on an already suspect trade deal with China. 

Technicals: July soybeans continue to defend our pivot pocket, that remains intact from 829-834. The bulls must defend this pocket, a breakdown is a gateway for new lows, potentially taking us below the psychologically significant $8.00 handle. Resistance comes in from 857-861 ¼. Consecutive closes above this pocket would neutralize the chart, until then, the bears remain in control.

Bias: Neutral/Bearish

Previous Session Bias: Neutral/Bearish

Resistance: 857-861 ¼****, 871 ¼-875**

Pivot: 829-834

Support: 818-821***, 808 ¼***, 791**


Chicago Wheat (July)

Fundamentals: July Wheat futures continue to drift lower as premium continues to deflate with little supportive news. With prices where they are, no news is bad news for wheat, the bull needs to be fed consistently. 

Technicals: Technical support was tested yesterday and again in the overnight sessions, so far holding, keeping that intact at 520-525. This pocket represents the lows from April 17 and the breakout point from March 19. A break and close below here opens the door for accelerated selling, potentially taking us back below the psychologically significant $5.00 handle. First resistance comes in from 538-540 ½.

Bias: Bearish

Previous Session Bias: Bearish

Resistance: 538-540 ½**, 552-554 ¾***, 562-565½****

Pivot: 520-525

Support: 506 ¼-512 ¼***, 491 ¾-494 ¼****

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