Fundamentals: May corn futures continued to drift lower yesterday, spilling into overnight/early morning weakness today. The destruction we saw in the oil market yesterday did not help and it is raising concerns about what it could mean for the broader markets. Yesterday’s export inspections came in at 684,000 metric tons, this was below the low end of expectations. Crop Progress was released after the close, that showed corn planting 7% complete, in line with expectations and two notches below the 5-year average. Brazil’s second corn crop estimate was cut 1.3 million tons, to 67.9.
Technicals: The technical landscape has gone from bad to worse over the past few sessions, continuing the trend of lower lows and lower highs, taking us deeper into uncharted territory. The decline has brought the RSI down to 23.73, technically oversold but far from a good reason to buy. Our bias remains neutral.....Click this link to get the FULL report, or email Oliver@BlueLineFutures.com
Previous Session Bias: Neutral
Resistance: 330-332****, 343 ¼-344 ¾**
Pivot: 313 ¾-315 ¼
Support: 298 ¾-301 ¼**
Fundamentals: May soybeans continue to bleed lower as the optimism around a trade deal with China continues to evaporate. We are 25% through the year and they have lived up to roughly 16% of the agreement. Recent blame for the virus (well deserved) will likely add tension to the relationship. Export inspections yesterday morning came in at 540,000 metric tonnes, within the range of estimates. Yesterday’s crop progress report showed soybeans are 2% planted, inline with expectations. Brazils harvest is 92% complete, inline with their 5-year average.
Technicals: The market is working on it’s seventh consecutive lower close, with prices making new contract lows in the early morning trade. This has been something we have been warning about since last week’s technical breakdown. As noted in previous reports, we would not be surprised to see prices with a 7 in front. The RSI (relative strength index) is at 26.9175. The recent low was 19, when we posted a near term bottom last month.....Click this link to get the FULL report, or email Oliver@BlueLineFutures.com
Previous Session Bias: Neutral/Bearish
Resistance: 842-845 ¼***854-858 ¾****, 871 ¼-875**
Fundamentals: Wheat is shockingly the safe haven in the grain sector, staging a strong rally yesterday and holding gains in the early morning trade. Export inspections yesterday morning came in at 349,000 metric tons, right at the low end of expectations. Yesterday’s Crop Progress report showed spring wheat planting at 7% complete, 4% behind expectations and 11% behind the 5-year average pace.
Technicals: May wheat futures managed to hold 4-star support on Friday, rallying as much as 37 ½ cents since then to test our 4-star resistance pocket, 564-568 ½. We would not be surprised to see the market chop around within this range, over the next several sessions. If the bulls are able to chew through resistance, it could spark a bigger move higher and a retest of the January and March highs, 587-590 ¾.....Click this link to get the FULL report, or email Oliver@BlueLineFutures.com
Previous Session Bias: Neutral
Resistance: 564-568 ½****, 587-590 ¾****
Pivot: 540 ½-542 ½
Support: 525-258 ¼****, 506 ¼-512 ¼***, 491 ¾****
Feel free to 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.