Daily Grain Market Commentary

Corn (December)

Fundamentals: December corn futures gapped higher in last night’s open, following the release of the weekly USDA crop progress data. Good/Excellent ratings for corn dropped 5%, to 64%. This was a bigger drop than expected, the biggest drops coming from Michigan (-11%) and Iowa (-9%). The hot and dry weather is continuing to raise concerns, sparking short covering, and new buying interest. Is the weather premium too little too late? Time will tell.

Technicals: The gap higher will now be significant support, which happens to be our previously listed 4-star resistance, that comes in from 343 ¾-346. If the Bull camp can continue to defend this pocket it is possible, we see momentum take us to retest the July highs, 359 ½-363 ¼. This pocket also contains a key retracement and the 200-day moving average. The RSI (relative strength index) is at 66.85, The most overbought this contract has been since May of 2019.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 359 ½-363 ¼****

Support: 343 ¾-346****, 326-330***

Soybeans (November)

Fundamentals: Soybean futures gapped higher last night after the weekly crop progress report showed a bigger drop in ratings than expected. Good/Excellent conditions are seen to be 69%, 3% below last week. The hot and dry weather through the Midwest continues to be a big concern, which is warranted in our opinion. The big drops came in Michigan (-10%), South Dakota (-10%), and Iowa (-6%).

Technicals: The market finished yesterday’s session in our pivot pocket, 905 ½-911 ½. This is where the gap is from last night's open, adding to the significance. As mentioned in previous reports, the near-term upside objective for the Bull camp comes in from 923-925 ¼. Consecutive closes above this pocket could spark a bigger leg higher.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 923-925 ¼***

Pivot: 905 ½-911 ½

Support: 883-887 ¾***, 866 ¼-873****

Chicago Wheat (December)

Technicals: Wheat futures gaped higher and are trying to ride the coattails of corn and beans, but the effort seems dismal in the overnight and early morning trade. The market worked into our 3-star resistance pocket yesterday, we defined that as 540-542 ½. This pocket represents previously important price points and the 200-day moving average. We like leaning on the sell side on the first test, but a breakout above would have us ripping the band-aid off and looking for the next setup.

Bias: Bearish/Neutral

Previous Session Bias: Neutral

Resistance: 540-542 ½***, 554 ½-557 ½****

Support: 526 ½-530***, 518**

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Oliver Sloup

Vice President



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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