Fundamentals: Corn futures caught a bid yesterday on some good export news, sales of 255,224 metric tons to Guatemala and Unknown (presumably South Korea) were reported. Export sales this morning came in at 1,006,900 metric tons, 28% higher than last week and 92% above the 4-week average.
Technicals: Corn futures took out stops above the top end of the range at 392, triggering over 10,000 contracts in seconds. The market closed above resistance, which is extremely encouraging, but we are still half-way gun shy with option expiration today. Looking past option expiration and into next week’s trade, we will be leaning on the buy-side more aggressively with clients. Consecutive closes above resistance could spark a short covering rally back above $4.00.
Previous Session Bias: Neutral
Resistance: 394-395**, 407 ¾-411 ¾****
Pivot: 390 ½-392
Support: 383-385**, 375-377 ¾***
Fundamentals: March soybean futures continued to bleed lower yesterday as money-flow remains weak. Export sales this morning came in at 790,000 metric tons, 23% higher than last week and 59% higher than the 4-week average.
Technicals: our 4-star technical support pocket is being tested for the second straight day, we have defined that as 902-905 ¾. This pocket represents the December 12th lows and the 50% retracement from the contract lows to the double top highs from October. We think that this represents a buying opportunity on the first test, but you will want to see a springboard reaction, not lingering prices.
Previous Session Bias: Neutral/Bullish
Resistance: 920-922 ¾***, 933 ¾-937 ¼***
Support: 902-905 ¾****, 880-882 ¾****
Chicago Wheat (March)
Fundamentals: Chicago wheat futures were choppy yesterday, finishing the day near unchanged. Broad based selling in the grain sector in the early morning trade is bleeding into wheat, if this continues on the floor open it could get ugly. Export sales this morning came in at 696,000 metric tons, 7% higher than last week and 58% higher than the 4-week average.
Technicals: The lack of follow through on the sell-side in yesterday’s trade was a relief for bulls, but they are not out of the woods yet. Previous highs and resistance at 573 ½ is now the crucial pivot point. A break and close below here could trigger additional long liquidation and accelerate the selling into the 550’s.
Previous Session Bias: Bearish/Neutral
Resistance: 598-601 ¾***
Support: 573 ½-578 ¾***, 554 ½-557 ¼***
Feel free to contact Oliver with any questions or comments
Call or Text: 312-837-3938
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.