Fundamentals: Corn futures are grinding higher in the early morning trade. Yesterday’s Crop Progress report showed corn planting in the U.S. is 80% complete, within the range of expectations and above the 5-year average pace, 71%. Weekly export inspections came in at 1,151,000 metric tons, this was towards the top end of estimates. With funds positioned the way they are, at this time of year, we remain optimistic on prices.
Technicals: Corn futures remain range-bound as they continue to lay the foundation for a solid intermediate term low. The market is again testing resistance, we have defined that as a pocket from 320-325. If the Bulls can chew through and close above this pocket, we could see that spark a wave of short covering from funds, who are net short over 200,000 contracts......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: Soybean futures manage to work higher yesterday as wet weather over the weekend raised concerns about the crop. That strength has spilled over into a firm trade in the overnight/early morning trade. Yesterday’s weekly Crop Progress report showed soybean planting in the U.S. is 53% complete, 3% below expectations, but still 15% ahead of the 5-year average. Weekly export inspections came in at 352,000 metric tons, within the range of expectations.
Technicals: The market held support to start the week which has helped elevate prices to the middle of the recent risk range. Resistance remains intact from 857-861 ¼. We are optimistic that we can see a retest of this pocket and potentially a breakout. A breakout could open the door for a swift move higher, the next resistance pocket comes in from 877 ½-882 ¼......Contact us for the FULL report!
Previous Session Bias: Bullish/Neutral
Resistance: 857-861 ¼****, 877 ½-882 ¼***
Support: 818-821***, 808 ¼***, 791**
Chicago Wheat (July)
Fundamentals: Chicago wheat futures are fishing for a bottom, finding some buyers in the overnight and early morning trade. Yesterday’s weekly crop progress report showed that spring wheat planting is 60% complete, within the range of expectations but 20% behind the 5-year average. Winter wheat conditions are at 52% good/excellent, within the range of expectations.
Technicals: Not much has changed since yesterday’s report. The market tested and held our support pocket, 491 ¾-494 ¼. As mentioned in last week’s and yesterday’s report, “ 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 market is trying to stabilize, consecutive closes above the psychologically significant $5.00 handle could spark a relief rally
towards the 520’s......Contact us for the FULL report!
Previous Session Bias: Neutral
Resistance: 512 ¼-514 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.