Fundamentals: Corn futures were little changed yesterday as market participants await new news to give us new direction. That might not come until next weeks planting and stocks report. We hope to have some estimates compiled before the weekend. The second corn crop in Parana, Brazil is catching up to the average pace, currently about 88% complete.
Technicals: Corn futures seem to be tethered to the 550 level as we head into options expiration on Friday. We continue to believe there are tradable opportunities on both sides of 550 this week, keeping our near-term bias at Neutral. The significant support and resistance levels for a little longer time frame remain intact, 536-540 and 556 ¼-559 ¼ respectively. A breakout or breakdown from these pockets would likely give us a bigger directional move.
Previous Session Bias: Neutral
Resistance: 556 ¼-559 ¼****, 570 ¾-575*, 600*
Support: 536-540***, 517 ¾-523 ¼***
Fundamentals: Soybeans continue to be stuck in a range, there has not been a lot of new news for the Bulls or Bears to really jump on, to move the market, recently. That will likely change by next week when we get the stocks and plantings report. We hope to have some estimates out before the weekend. Soybean harvest in Parana, Brazil is estimated to be 75% complete, a big increase from the previous week and now just a stone’s throw away from the average pace.
Technicals: May soybean futures have stabilized after being under pressure at the beginning of the week. All in all, we are still mostly rangebound, keeping many of our technical support and resistance levels intact, which might be the case until we get next week’s plantings and stocks report. Resistance comes in from 1434 ½-1436 ½, support comes in from 1390-1400. A breakout or breakdown from these pockets would likely give us a bigger directional move. In the meantime, there is opportunity for traders on both sides of the markets.
Previous Session Bias: Neutral
Resistance: 1434 ½-1436 ½***, 1442-1445 ¾*, 1460*
Support: 1390-1400****, 1379**, 1333 ½-1335 ½***
Technicals: Chicago wheat futures were all over the place yesterday, trading in a 23 ½ cent range, likely shaking out players on both sides of the market. Prices are right back to where they were to start yesterday’s session, likely making traders a little gun-shy about getting overconfident on a near-term direction. The Bear camp remains in control until we see consecutive closes above 644 ½-649 ½.
Previous Session Bias: Neutral/Bearish
Resistance: 644 ½-649 ½***, 660 ½-666 ¾***, 674 ¾-679**
Pivot: 626-631 ½
Support: 608-612 ½***, 596 ½-600**
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Blue Line Futures
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.