• Oliver Sloup

Grain Express


Corn (December)

Fundamentals: Corn futures chopped around yesterday, finishing the day in positive territory. The ability to defend support has encouraged some follow-through momentum in the overnight/early morning trade. This morning’s weekly export sales report showed net sales of 270,400 MT for 2019/2020 were up noticeably from the previous week and from the prior 4-week average. For 2020/2021, net sales of 1,180,500 MT primarily for China (666,000 MT), Mexico (233,000 MT), and unknown destinations (156,200 MT). Technicals: The market has managed to defend technical support after gaping higher Sunday night, which keeps the Bulls in control as fund short-covering continues. 4-star resistance comes in from 359 ½-363 ¼. This pocket also contains a key retracement and the 200-day moving average. The RSI (relative strength index) is at 70.46, the most overbought this contract has been.

Bias: Neutral Previous Session Bias: Neutral

Resistance: 359 ½-363 ¼**** Support: 343 ¾-346****, 326-330*** Soybeans (November)

Fundamentals: Soybean futures are breaking out in the early morning trade as concerns over a deteriorating crop continue to mount. This morning’s weekly export sales report showed net sales of 50,400 MT for 2019/2020 were down noticeably from the previous week and down 82 percent from the prior 4-week average. For 2020/2021, net sales of 1,874,400 MT were primarily for unknown destinations (822,000 MT) and China (592,000 MT).

Technicals: The market has broken out above technical resistance in the early morning session, though Bulls will want to see a confirmation of price action when we see more participation on the “floor open”. The RSI is at 71.50, the most overbought since we topped out in January with an RSI at 72.43.

Bias: Neutral Previous Session Bias: Neutral

Resistance: 938 ¼**, 950**, 980-982 ¾**** Pivot: 923-925 ¼ Support: 905 ½-911 ½****, 883-887 ¾***, 866 ¼-873**** Chicago Wheat (December)

Fundamentals: This morning’s weekly export sales report showed Net sales of 764,100 metric tons (MT) for 2020/2021 were up 46 percent from the previous week and 41 percent from the prior 4-week average. For 2020/2021, net sales of 11,900 MT were for Mexico (10,900 MT).

Technicals: The market is moving above technical resistance in the early morning trade; the Bull camp will want to see this confirmed through more participation on the “floor open”. As mentioned in yesterday’s report, the Bear camp needed to see a clear-cut rejection yesterday to confirm a technical failure, that was not the case and it moves our bias back to neutral.

Bias: Neutral Previous Session Bias: Bearish/Neutral

b Resistance: 554 ½-557 ½**** Pivot: 540-542 ½ Support: 526 ½-530***, 518**


Sign up for your FREE trial of our daily Grain & Livestock Market Analysis!

Follow us on our social media sites to stay on the pulse of our latest research and commentary!

Twitter - twitter.com/bluelinefutures

Facebook - facebook.com/BlueLineFutures

StockTwits - stocktwits.com/BlueLineFutures

Latest blog posts - bluelinefutures.com/blog

Oliver Sloup

Vice President

312-837-3938

Oliver@Bluelinefutures.com

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.

10 views
Logo_desktop_2x.png

141 W. JACKSON BLVD., SUITE 2845

CHICAGO, IL 60604

INFO@BLUELINEFUTURES.COM

P: (312) 278-0500

F: (888) 370-2221

  • YouTube - White Circle
  • Facebook - White Circle
  • Twitter - White Circle
  • LinkedIn - White Circle

© 2020 by Blue Line Futures, LLC. All rights reserved.

Futures trading involves substantial risk of loss and may not be suitable for all investors.