Grain Express

Corn (July)

Fundamentals: The volatility we have seen in the overnight session resembles that of a meat grinder, which is far from what markets should be, a vehicle for true price discovery. This trade has more to do with momentum and money flow than anything, and we would not be surprised to see that be the driver for the next week(ish). For months now, we have been talking about positions of Managed Money and positions of Producers. Funds have been adding to their historically large, long position, flexing their muscles with their new expanded limits which helps price rise as it is, but it is also squeezing producers who are near record net short, which has amplified the upside move.

Technicals: Corn futures have seen a wave of volatility over the last few weeks as the fundamental trade transitioned to a momentum trade, then to an emotional trade, and finally an irrational trade. We do not use the word irrational lightly, but there is no way you can provide a reason for trading in a 54 ½ cent range (July futures), in less than 24 hours. With the wide-ranging trade, many of the technical indicators will need to recalibrate, but we will try our best to provide some sort of road map. Support comes in from 629 ½-632. This pocket represents previously important price points and the 50% retracement from where the last surge really started, near 550.

Bias: Neutral

Previous Session Bias: Neutral/Bullish

Resistance: 652-657***, 666 ¼-670***, 684**

Support: 629 ½-632***, 604 ½-509 ½**

Soybeans (July)

Fundamentals: July soybean futures have traded as much as 84 ¼ cents off yesterday’s highs. If you are looking for a fundamental catalyst, you are wasting your time. Sure, fundamentals matter and they have been offering solid support to the market, but the recent rise and fall has more to do with momentum, money flow, and algos, than anything.

Technicals: Technical are out of whack and it may take a few sessions for things to recalibrate, so take this section with an extra grain of salt this week. First support comes in from 1480-1481 ¾. A break below here could take us back towards the breakout point from the 20th, near 1450. First resistance comes in from 1515 ½-1518. A close above this pocket could take us back towards 1544 ¾-1550.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 1515 ½-1518**, 1544 ¾-1550**

Support: 1480-1481 ¾**, 1444 ½-1452 ¾**

Chicago Wheat (July)

Technicals: July wheat are WELL off the highs from yesterday and have peeled back to the 61.8% retracement, 708 ¾. A break and close back below here could accelerate the selling. There is some psychological support at $7.00, but below that, it is mostly air until 671-680.

Bias: Neutral/Bullish

Previous Session Bias: Neutral/Bullish

Resistance: 746-750**

Pivot: 732-735

Support: 700-708 ¾**, 671-680**

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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.

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