Fundamentals: Yesterday’s crop progress report showed good/excellent ratings for corn at 69%, unchanged from last week, and a hair better than expected. Weekly export inspections came in at 1,149,000 metric tons, above the top end of expectations.
Technicals: Corn futures gave back gains yesterday, from the back half of last week. That pressure has spilled into the overnight/early morning trade as crop conditions remain stable. 330 ¼-332 ¼ is the support pocket the Bulls MUST defend. A break and close below here and we could see a retest of contract lows. On the resistance side, 342-344 is the pocket the Bears need to defend. Consecutive closes above here could spark short covering. Ultimately, we think the upside is limited, but would not be surprised to see the market chop back and forth in a wider range, in the intermediate-term.
Previous Session Bias: Neutral
Resistance: 349 ¼-350***, 360-363 ½****
Support: 330 ¼-332 ¼***, 322**
Fundamentals: Yesterday’s crop progress report showed good/excellent ratings for soybeans at 69%, 2% higher than expectations, and 1% higher than last week. The better than expected conditions have put pressure on beans in the overnight/early morning trade. Yesterday’s export inspections came in at 453,000 metric tons, within the range of expectations.
Technicals: The market ran up to the psychologically significant $9.00 handle but failed to attract new buyers into the market to set the stage for a potential breakout. The market is retreating this morning, approaching our pivot pocket from 886 ¾-889 ¾. A break and close below here would neutralize our friendly bias, as the market threatens to make a lower high this week.
Previous Session Bias: Bullish/Neutral
Resistance: 905 ½-911 ½****
Pivot: 886 ¾-889 ¾
Support: 877 ½-882 ¼**, 866 ¼-870 ¼***
Chicago Wheat (September)
Fundamentals: Yesterday’s crop progress report showed winter wheat harvest is 74% complete, 5% behind expectations. Spring wheat conditions came in at 68% good/excellent, in line with expectations and unchanged from last week. Weekly export inspections came in at 501,000 metric tons, within the range of expectations.
Technicals: The market pulled back to retest our 4-star support pocket, we have defined that as 517 ½-523. If you had sold at higher prices, this is the spot to consider reducing as we could see a minor relief rally. 532-535 ½ would be the pocket to look at re-selling. If support gives way, we could see the selling accelerate, taking us back to the breakout point from July 8th, $5.00 (also psychologically significant).
Resistance: 532-535 ½***, 546 ¼-551 3/4 ***
Support: 517 ½-523****, 496 ½-500***
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Oliver@BlueLineFutures.com and 312-837-3938
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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.