Corn Futures (May)
Fundamentals: Corn futures went into the long weekend with a risk-off mentality. The world made it through the three-day weekend in one piece and we are gaining back what we had lost on Friday. The Phase-1 trade agreement is in affect which could help offer some broad-based support to the market, export data in the coming weeks will begin to carry more weight. March options expiration is on Friday, there is a lot of open interest in calls from 380-390, which could keep a lid on a meaningful rally.
Technicals: The market made new lows for the move, on Friday, but is gaining that ground back in the early morning trade. The market remains mostly range-bound, but as mentioned in Friday’s report: “We are optimistic about prices in the near term. With prices at the low end of the range, we see this as a good risk/reward situation to the buy-side.”. Significant resistance comes in from 389 ¾-393 ½. Consecutive closes above this pocket could be enough to trigger a bigger short-covering rally. 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.
Previous Session Bias: Bullish/Neutral
Resistance: 389 ¾-393 ½***, 398 ¼-398 ¾****
Support: 380 ¾-382 ¼***, 374 ¾****
Fundamentals: Soybeans have seen a choppy overnight session, trading both sides of unchanged. Phase-1 is officially underway, a silver lining. The bulls will want to see a weekly export business increase in the coming weeks as verification that Phase-1 holds more hope and not just hot air. NOPA will release their January crush report this morning, estimates are 174 million bushels, down from 174.8mb in the previous month’s report. March options expiration is on Friday, we would not be surprised to see $9.00 be a magnet at the end of the week.
Technicals: If the market can continue to defend psychologically support at the $9.00 handle, we could see an extension back towards 914-917. This pocket represents several previously important price points, as well as the 50% retracmenet from the contract lows to the highs.
Previous Session Bias: Neutral
Resistance: 914-917****, 928-930 ¾***
Support: 898 ¼-900***, 888 ¼-890 ½**, 875-880****
Chicago Wheat (May)
Technicals: May wheat futures surged higher in the overnight session on the back of reports that Australia will have their smallest wheat harvest in over a decade, in large part due to the ongoing drought. Resistance remains intact from 562 ½-564 ½, the bears remain in control until we see consecutive closes above this pocket. 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.