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Fundamentals: Corn futures gave back gains yesterday, keeping things mostly range bound as market participants wait for new news that will offer more direction on future prices. Weekly export sales this morning came in at 1,073,200 metric tons, 39% higher than last week and 14% above the 4-week average. Primary increases came from China and Mexico.
Technicals: Corn futures remain range-bound, which could be the start of forming a stable bottom, which is a process not a point. As mentioned in yesterday’s report, we have a bullish bias, but do not confuse that with lofty expectations. The fundamental backdrop will likely keep a lid on meaningful rallies. 316-317 ¾ has been our pivot pocket, this needs to be defended by the Bull camp. A break and close below here would neutralize our bias and potentially take prices to retest contract lows at 309.....Contact us for the FULL report!
Previous Session Bias: Bullish
Resistance: 320-325***, 330-333****, 343 ¼-344 ¾**
Pivot: 316-317 ¾
Support: 308 ¼-310*** 298 ¾-301 ¼**
Fundamentals: July soybeans broke lower yesterday on the inability to breakout above technical resistance in the previous three sessions. Export sales this morning came in at 655,500 metric tons, unchanged from last week, but 13% higher than the 4-week average. Primary increases came from China an Egypt.
Technicals: We were hopeful that we could see the market breakout above the top end of our 4-star resistance pocket, but that fell short, keeping the pocket intact from 857-861 ¼. The market is now testing our pivot pocket again, 829-834. This is a MUST hold pocket, a break and close below could open the door for a retest of contract lows at 818.....Contact us for the FULL report!
Previous Session Bias: Neutral/Bullish
Resistance: 857-861 ¼****, 877 ½-882 ¼***
Support: 818-821***, 808 ¼***, 791**
Chicago Wheat (July)
Fundamentals: Weekly export sales came in at 203,500 metric tons, down 17% from last week and 28% below the 4-week average. Some increases were offset by reductions from “unknown”. Over the last few months, we have talked about the Bull (market) needing to be fed, the lack of continuous bullish news has led to continuous long liquidation from lofty prices.
Technicals: Lower highs and lower lows continues to be the trend, as prices slide to their lowest levels in two months. In yesterday’s we talked about how a break below recent support “could accelerate the selling and take us down into the low 490’s.). 491 ¾-494 ¼ is that target, if you have been short, this would be a spot to consider reducing against and potentially flattening up. If you want to be a buyer, this is a good risk/reward setup. The RSI (relative strength index) is at its lowest level since prices bottomed in the middle of March. ....Contact us for the FULL report!
Previous Session Bias: Neutral/Bearish
Resistance: 506 ¼-512 ¼***, 525-529****
Support: 491 ¾-494 ¼***
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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.