Corn (July) Fundamentals: Corn futures are firmer to start the week as funds look to reduce short positions and tie up loose ends ahead of this week’s USDA report, out on Thursday. We will have estimates out by mid-week. This afternoons Crop Progress report is expected to show corn planting in the U.S. at 95% complete with good/excellent conditions unchanged from last week.
Technicals: The market has worked into our 4-star resistance pocket, 330-333. We remain upbeat on prices but believe this is a spot to capitalize on if you had bought at lower prices over the last few weeks. If we can achieve a breakout above technical resistance, we could see that spark a bigger short covering rally, regardless of near-term fundamentals. Previous resistance will now be support, we have that listed as 320-325.
Bias: Bullish/Neutral Previous Session Bias: Bullish
....Contact us for the FULL report! Soybeans (July) Fundamentals: Soybean futures rallied last week as headlines of sales to China hit the wires, several days in a row. This afternoon’s Crop Progress report is expected to show planting progress at 88% with good/excellent conditions near 71%. Friday’s Commitment of Traders report showed funds were net buyers of 120 contracts, extending their net long position to 7,134 contracts. There is a USDA report out on Thursday, we will have estimates for you in the coming days.
Technicals: Early last week we talked about a breakout above resistance near 860 leading to a swift move higher, we also mentioned reducing some of that exposure ahead of the weekend. We are still optimistic on prices, but ahead of weekends and ahead of a USDA report we believe it’s important to reward the market. Previous resistance now becomes support, 857-861 ¾, the Bulls are in control until we see a breakdown back below this pocket. Resistance remains intact from 877 ½-882 ¼.
Bias: Bullish/Neutral Previous Session Bias: Bullish/Neutral
Chicago Wheat (July) Fundamentals: Chicago wheat futures are starting the week under pressure, much of which is technical selling after failing against resistance on Thursday and Friday. This afternoon’s crop progress report is expected to show spring wheat planting 97% complete and winter wheat good/excellent conditions unchanged from last week.
Technicals: The market ran up against our technical resistance pocket last week, 525-529. We mentioned in multiple reports “If you want to be short, this is a spot to consider selling.”. The market is now back down the technical support 512 ¼-514 ¼. If you did short against resistance, this is a spot to consider reducing.
Bias: Neutral Previous Session Bias: Neutral
Reach out to learn more about our new Ag Trade Alerts program or Sign up for your FREE trial of our daily commodity reports!
Call/Text/Email, Oliver with any questions.
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.