Fundamentals: March corn futures were under pressure yesterday as buyers seemed unwilling to step in front of the uncertainty surrounding coronavirus. Weekly export inspections came in at 562,000 metric tons, towards the low end of estimates.
Technicals: March corn futures tested and held the low end of support, we have had that defined as 375-377 ¾, this is a MUST HOLD pocket for the bull camp. A break and close below opens the door for a potential retest of the contract lows at 365 ¾. Markets are firm in the early morning trade, but the bulls have their work cut out for them. 384 ¾-387 ¼ is our pivot pocket. If the bulls can achieve consecutive closes above this pocket, we could see....Click this link or email Oliver@BlueLineFutures.com for the full report!
Fundamentals: Soybeans managed to rally yesterday on technical relief and good export inspections, 1,356,000 metric tons. The USDA also announced a sale of 130,000 metric tons of beans to Egypt. Reports that China is seeking flexibility (already) on trade targets amid coronavirus added a wet blanket on things midday, but futures are continuing to stabilize in the early morning trade.
Technicals: the market is recovering well this morning on broad-based buying across nearly all of the markets. 875-880 is our pivot pocket that the bulls need to see consecutive closes above. If they can achieve this, we could see short covering add relief towards....Click this link or email Oliver@BlueLineFutures.com for the full report!
Chicago Wheat (March)
Technicals: March wheat futures tested and held our support pocket in the mid 540’s yesterday, this pocket contained the 50-day moving average, key retracement, previously important price points, and trendline support from the contract lows. In yesterday’s report we wrote: “If you’ve been short, this is an area to reduce exposure. We have had an outright Bearish bias but are moving that to Bearish/Neutral to start this week’s trade.”. We will be looking to put that short exposure back on against....Click this link or email Oliver@BlueLineFutures.com for the full report!
Kansas City Wheat (March)
Technicals: March KC wheat futures tested and held our 3-star support pocket, listed as 453 ¾-458 ¾. This pocket represents a key retracement, 200 day moving average, and the breakout point from December 16th. In yesterday’s report we wrote: “If you’ve been short the market, this is a spot to reduce exposure. If you have a bullish bias, this is a spot to consider buying.”. KC Wheat may be able to rally another 10-15 cents from where we are at this morning, from there....Click this link or email Oliver@BlueLineFutures.com for the full report!
Technicals: Cotton futures are rebounding in the early morning trade, but this looks more like relief after selling off hard for the last week. 67.80-68.00 will be an inflection point for the market, the bears have the advantage until the bulls can achieve consecutive closes above here. If the bears can defend resistance, we would look for a move towards....Click this link or email Oliver@BlueLineFutures.com for the full report!
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.