Fundamentals: Yesterday morning, the USDA announced another flash sale of corn, to China for 2021/2022, this time for 1,360,000 metric tons. The market was able to consolidate higher yesterday, but lacked conviction from the buyside, despite the continued large flash sales. Large funds who have been long the market since last fall are likely booking some profits in anticipation of a lot more acres showing up in next month’s USDA report.
Technicals: The market has erased yesterday’s gains and are hovering near our pivot pocket, 652-657. A failure to defend this pocket could take us to retest the recent lows and our support pocket, 629 ½-633. Significant resistance is still a ways away, that comes in from 684-691. As mentioned in Monday’s interview with RFD-TV, a failure to get out above this pocket could start to form a bearish head and shoulders pattern.
Previous Session Bias: Neutral
Resistance: 684-691***, 703 ¼**, 735 ¼**
Support: 629 ½-633***, 619 ½**
Fundamentals: July soybeans are continuing to trade lower as it seems a lot of the bullish headlines, we have been seeing over the last two months have been priced into the market and the longs are capitalizing on the higher prices.
Technicals: Soybean futures are drifting lower in the early morning trade as a risk-off sentiment sweeps across the broader markets. The July contract is currently $1.13 off the highs from last week. Though extremely tough to time, these pullbacks should not come as a surprise, following the uninterrupted $3 rally we saw since the beginning of April.
Previous Session Bias: Neutral
Resistance: 1645-1650**, 1667 ½**
Pivot: 1574 ¾-1577 ¾
Support: 1535 ¾-1540 ½***, 1490 ½-1500****
Chicago Wheat (July)
Technicals: The market has broken below first support this morning, 690 ¾-692, which has opened the door for a run at our more significant support pocket, 674 ¼-680. This pocket represents previously important price points, including the breakout point from April 22nd. If you have been short the market, this would be a spot to consider reducing/buying back those positions.
Previous Session Bias: Neutral/Bearish
Resistance: 711 ½-717***, 732-735**
Pivot: 690 ¾-692
Support: 674 ¼-680***, 653 ¾-660 ½**
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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.