Grain & Cotton Express
Fundamentals: March corn futures rallied back yesterday on more export news, this time it was a sale of 125,000 metric tons to Mexico, for the current marketing year. New meaningful news outside of this is hard to come by, near term price action will continue to be dominated by money-flow and technicals.
Technicals: March corn futures worked into our pivot pocket yesterday but failed to attract new buyers above it. We have defined that gap as 384 ¾-387 ¼. This pocket represents yesterday’s highs, the gap from Sunday night, and the 100-day moving average. Yesterday, we were working with clients who bought technical support in the previous session, to reduce that exposure. The inability to chew through 384 ¾-387 ¼ has prompted us to move our bias to Neutral, from
Previous Session Bias: Bullish/Neutral
Resistance: 392-394 ¼***, 407 ¾-411 ¾****
Pivot: 384 ¾-387 ¼
Support: 375-377 ¾***, 365-365 ¾****
Fundamentals: The market finished lower, but well off the lows, a positive sign for technicians. The market seems to be passed the peak panic that we saw Sunday night, with regards to coronavirus. There is little new news on the wire, so money-flow and technicals will be in the driver’s seat, near term.
Technicals: The market surged higher last night, testing our pivot pocket from 899-902 ½. This pocket represents the gap from Sunday night. The price action from last night has reversed, which has us very cautious this morning. This was a potential stop hunt to shake out the weak shorts before taking the market lower. We had a Neutral/Bullish bias in yesterdays report but have put that the Neutral for now. If the bulls cannot find strength on the floor open (where we get more participation), we wouldn’t be surprised to see the market retreat towards 879-882 ¾. This represents the low end of the range from August, September, and December. The RSI would also be in deeply oversold territory at that point. If you want to be long, try and be patient for that pocket.
Previous Session Bias: Neutral/Bullish
Resistance: 920-924***, 933 ¾-937 ¼***
Pivot: 899-902 ½
Support: 879-882 ¾****
Chicago Wheat (March)
Technicals: Chicago wheat futures failed to reclaim ground above our pivot pocket yesterday, keeping the bear camp in control near term. There is some minor support from 557 ¼-559 ½, a break and close below that pocket could trigger long liquidation from funds, taking us down to 542-545 ¼. This pocket represents the 50-day moving average, support at the beginning of the year, and trendline support from contract lows in September.
Previous Session Bias: Bearish
Resistance: 573 ½-578 ¾***, 598-601 ¾***
Support: 557 ¼-559 ½***, 542-545 ¼****
Kansas City Wheat (March)
Technicals: Kansas City wheat futures failed to attract meaningful buying above our pivot pocket, we have had that listed as 488 ½-490 ½. Until the bulls can achieve consecutive closes above here, we believe the bears have the advantage. First support remains intact, we have defined that as 470-471 ¾. Though we have a bearish tilt in our bias, we think the short side of Chicago wheat offers more value.
Previous Session Bias: Neutral/Bearish
Resistance: 498-500**, 509 ¾-513***
Pivot: 488 ½-490 ½
Support: 470-471 ¾****, 453 ¾-458 ¾***
Technicals: March cotton futures continued to rebound yesterday, taking prices back into our pivot pocket from 70.00-70.50. Consecutive closes above here gives the bulls the advantage, a failure to do that gives the bears the edge. Our bias remains Neutral for today’s trade.
Previous Session Bias: Neutral
Support: 66.93-67.13***, 62.81-63.73***
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.