Grain & Cotton Express
Fundamentals: Yesterday’s USDA report lived up to expectations of being rather “blah”. U.S. ending stocks came in at 1.892, more than the average estimate and unchanged from last month. World ending stocks came in at 296.84, below the average estimate. As mentioned in our interview with RFD-TV yesterday, attention will quickly turn back to money-flow and technicals.
Technicals: Corn technicals are little changed (again). A break and close below 375-377 ¾ would mark lower lows, opening the door for a drop towards contract lows at 365 ¾. The bears have the advantage until the bulls can achieve consecutive closes back above....Click this link for the FULL report!
Fundamentals: March soybeans chopped around yesterday, following a relatively mute USDA report (as expected). U.S. ending stocks came in at .425, below the average estimate of .443. World ending stocks came in at 98.86, compared to the average estimate of 96.90. As with corn, we believe money-flow and technicals are back on center stage.
Technicals: Soybeans were little changed yesterday with the bears holding a slight advantage on the near-term chart, until we see consecutive closes back above 888 ¼-890 ½. This pocket represents the breakdown point from January 30th and a key retracement. 875-880 is our pivot pocket, a break and close below here opens the door for....Click this link for the FULL report!
Chicago Wheat (March)
Fundamentals: Wheat futures got taken to the woodshed yesterday, despite a relatively dull USDA report. U.S. ending stocks came in at .940, below the average estimate, .954. World ending stocks came in at 288.03, above the average estimate of 287.44. Much of the selling was technical in nature, something we have been hitting on for the past several weeks, the reason we have had an outright “Bearish” bias.
Technicals: We have had our bias for corn and beans resting at Neutral recently, but our conviction on wheat has been much higher, holding an outright Bearish bias for the past few weeks. We had been talking about the bearish head and shoulders pattern for some time now and that continues to play out. We still believe we can see a drop....Click this link for the FULL report!
Kansas City Wheat (March)
Technicals: Kansas City wheat futures were under pressure yesterday but have been holding well relative to the Chicago contract, perhaps we finally see that spread narrow (knock on wood). Our pivot pocket today comes in from 468 ½-471, this pocket represents the 50-day moving average which the market has been trading against and holding for the last week and a half. This pocket also contains the 50% retracement from the June highs to the contract lows. If the bulls fail to defend this pocket, we could see prices leak towards....Click this link for the FULL report!
Techncials: The market has been consolidating higher for the better part of the last week but lacks conviction and appears to be setting up for a potential bear flag. A break and close back below our pivot pocket from....Click this link for the FULL report!
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