Grain Express | 10.25.2021

There are now flash sales to report (as of writing this)

Corn (December)

Fundamentals: Corn futures performed well through last week’s trade, up 12 ¼ cents. Friday’s Commitments of Traders report showed Managed Money were net sellers of 8,363 futures/options through October 19th, trimming their net long position to 219,568 futures/options (266,433 longs and 46,776 shorts). Corn is benefiting from the strength in beans and wheat this morning.

Technicals: Corn futures are continuing to inch towards our 4-star resistance pocket, 543 ¾-548 ½. This pocket represents a key Fibonacci retracement, the 100-day moving average, and previously important price points. We like selling against this pocket on the first test, but a break and close above would have us reassessing things, as it could open the door for a run back towards the 560 area.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 543 ¾-548 ½****, 558**, 566**

Pivot: 532-533

Support: 512 ¾-514 ¼***, 497 ½-507****

Soybeans (January)

Fundamentals: With November options off the board, volume will start to shift into the January futures contract. If you’re still in November futures, you may want to consider rolling or flattening. Despite finishing last week’s trade nearly 30 cents off the high, January futures were still up 13 cents on the week. Friday’s Commitments of Traders report showed Managed Money were net sellers of 10,903 contracts through October 19th, trimming their net long position (yet again) to a measly 18,165 futures/options contracts (76,864 longs and 58,699 shorts).

Technicals: January soybean futures, along with the broader grain complex is finding some strength in the early morning trade. 1250 might be a bit of a mental barrier, but the more meaningful resistance pocket comes in from 1258 ¾-1262 ¾. The Bulls are trying to mark a “harvest low”, a breakout above technical resistance could confirm that by marking higher lows and higher highs, for the recent move.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 1240 ½-1242**, 1259 ¾-1262 ¾**

Pivot: 1227-1231 ¾

Support: 1194 ¾-1200****, 1180-1185 ½****

Wheat (December)

Technicals: Wheat futures started the Sunday night trade under minor pressure, but have rallied back to positive territory, trading at its highest price in over two months. Spring wheat continues to be the leader in the wheat complex, trading above $10 last week and extending those gains to start this week’s trade. If the Bulls can maintain this strength through the floor open, we could see the market make an attempt at new contract highs, above the August 13th high, 786 ½.

Bias: Neutral/Bearish

Previous Session Bias: Bearish/Neutral

Resistance: 778 ¼**, 786 ½**

Pivot: 758 ½-760

Support: 743 ¾-746 ½***, 730-733 ¼**

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