Grain Express

Outside Markets: Outside markets managed to stabilize yesterday but have reversed and are trading limit down in the early morning trade.

Corn (May)

Corn futures continue to slide as the energy sector continues to slip, leading to concerns that ethanol plants will be grinding to a halt on these negative margins. May corn made new contract lows in the overnight session at 336 ¼, bringing the RSI down to 23.54. In uncharted territory and in this market environment, finding meaningful technical support is a fool’s errand. The bears remain in full control.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 363 ½-365 ¾****, 373 ¼-375**

Pivot: 350-355


Soybeans (May)

May soybeans managed to hold their own yesterday and rally in so far today. Being in uncharted territory, the bears remain in the driver’s seat. The RSI yesterday got as low as 19.58. In yesterday’s report we noted that the last two times we were that oversold we saw relief come into the market, do not confuse that with a bottom. In this environment, relief will likely get sold into. Our pivot pocket comes in from 842-845 ¼, but the more significant resistance comes in near 854.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 854-854 ¾***, 875**

Pivot: 842-845 ¼

Support: 820-821**

Chicago Wheat (May)

Chicago what tried to rally but ended up finishing off the highs. The market is trying again this morning to test and break above those highs, which could lead to additional relief. With that said, it is just relief for now. The market has been in a well-defined downtrend from the start of the year and the bears are still in full control.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 523-528 ½***, 540 ½-542 ½****

Pivot: 510 ¾-512 ¼

Support: 488 ¼-494****

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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.

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