A Mixed Start To The Week

Corn (December)

Fundamentals: Corn futures are quiet to start the week, following a long holiday weekend. As mentioned previously, weather has lost nearly all its significance, which will likely give us more mute Sunday night trades. Crop Progress will be out after the close, but as with weather, this is losing it’s influence on the market. Due to the holiday, export sales will be pushed back to Friday, but the big-ticket item on Friday (and this week) is the WASDE and Crop Production report, out at 11:00 AM CT. We will have estimates out in the next few sessions. Friday’s Commitments of Traders report showed Managed Money was net sellers of 12,133 futures contracts, trimming their net long position back to 245,750 futures contracts (281,251 long and 35,501 short).

Technicals: The market was in consolidation mode in the back-half of last week’s trade, which is continuing in the early morning session, leaving many of the technical support and resistance levels intact. Previous support will now act as resistance, that comes in from 529 ½-533. If the Bulls can chew through this pocket, we could get a bigger relief rally on the back of short covering. A failure to reclaim ground above resistance could continue the trend of long liquidation as harvest picks up pace..........Click here to read the FULL report and receive our market bias and technical levels!

Bias:

Previous Session Bias:

Resistance:

Pivot:

Support:

Soybeans (November)

Fundamentals: Soybean futures are firm in the early morning trade on optimism surrounding a potential pickup in demand. We didn’t see a lot of flash sales, but the weekly export sales data was strong. This could be an indication that China, along with other countries are buying soybeans more frequently, but in smaller amounts to avoid showing up in the daily flash-sales. Weather carries more weight than it does for corn this time of year, but that is diminishing as time pushes forward. Crop Progress will be out after the close, but as with weather, this is losing its influence on the market. Due to the holiday, export sales will be pushed back to Friday, but the big-ticket item on Friday (and this week) is the WASDE and Crop Production report, out at 11:00 AM CT. We will have estimates out in the next few sessions. Friday’s Commitments of Traders report showed Managed Money was net sellers of 12,752 futures contracts, shrinking their net long position to 65,817 futures contracts (93,271 long and 27,454 short), a very modest/neutral position.

Technicals: In last week’s reports we talked about the potential short covering rally above 1292 opening the door for a push back towards 1300 ½-1306 ¾, that has been achieved in the early morning trade. If you were bearish and reduced short exposure against support last week or bullish and bought support last week, this is the pocket to look at repositioning. If the market can chew through this pocket, we could see additional short covering take us towards 1325 ¾-1333. Technicals are never perfect, but they help define risk for entry/exit points..........Click here to read the FULL report and receive our market bias and technical levels!

Bias:

Previous Session Bias:

Resistance:

Pivot:

Support: Wheat (December)

Techncials: Chicago wheat futures were mostly firm in the overnight/early morning trade, but have retreated back towards unchanged into the early morning intermission. We moved our bias out of Bearish territory to outright Neutral in last week’s reports, with the thought that there will be opportunity for traders on both sides of the market in the near term. Looking at a little longer term time frame, the bears still have a technical advantage with a head and shoulders formation still intact on the chart. The bears will keep this advantage until the Bulls can achieve a conviction close or consecutive closes back above 744 ¾-750..........Click here to read the FULL report and receive our market bias and technical levels!

Bias:

Previous Session Bias:

Resistance:

Pivot:

Support:


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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

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