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Fundamentals: Corn futures are retreating in the early morning trade, erasing all of the gains from last Thursday’s rally. Some of the weakness comes on the back of headlines stating that China has told their state-owned companies to stop buying some U.S. Agricultural products. Friday’s Commitment of Traders report showed funds sold another 31,000 contracts, expanding their net-short to 276,000 contracts. This afternoon’s crop progress report is expected to show U.S. corn planting to be 95% complete with good/excellent conditions near 70%.
Technicals: The market ran up to our 4-star resistance pocket on Thursday and Friday, a pocket that we mentioned as being more significant and a spot to reduce long exposure, ahead of the weekend. The market is now pulling back into the low 320’s. We may consider using today’s pullback as an opportunity to get that long exposure back on. A break and close below first support would neutralize our bias.....Contact us for the FULL report!
Bias: Bullish/Neutral Previous Session Bias: Bullish/Neutral
Resistance: 330-333****, 343 ¼-344 ¾** Pivot: 320 Support: 316-317 ¾***, 308 ¼-310*** 298 ¾-301 ¼** Soybeans (July)
Fundamentals: Soybeans opened Sunday night on higher ground but have given back those gains are now trading in negative territory. Headlines that China ordered state-owned companies to stop buying agricultural products from the U.S. is the culprit for the 15-cent reversal. Friday’s Commitment of Traders report has funds net long roughly 6,000 contracts. This afternoon’s crop progress report is expected to show the U.S. soybean crop 78% planted.
Technicals: Soybean futures have been mostly rangebound for the last two months, with prices retreating towards the bottom end of the recent range we would look to potentially buy the dip. Our pivot pocket comes in from 829-834. A break and close below here would open the door for a potential retest of the contract lows, 818 ½.....Contact us for the FULL report!
Bias: Neutral/Bullish Previous Session Bias: Bullish/Neutral
Resistance: 857-861 ¼****, 877 ½-882 ¼*** Pivot: 829-834 Support: 818-821***, 808 ¼***, 791** Chicago Wheat (July)
Techincals: Wheat futures are softer this morning with the broad-based weakness in the grain sector coming from headlines in China. Our pivot pocket remains intact, 512 ¼-514 ¼. If the bulls can achieve a close above this pocket, we could see an extension towards the top end of the recent range and our 4-star resistance pocket, 525-529. Consecutive closes below keeps the door open for a retest of recent lows.....Contact us for the FULL report!
Bias: Neutral Previous Session Bias: Neutral
Resistance: 525-529**** Pivot: 512 ¼-514 ¼ Support: 491 ¾-494 ¼***
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Oliver@BlueLineFutures.com and 312-837-3938
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.