Fundamentals: December corn futures finished yesterday little changed as market participants awaited new news on harvest progress. The USDA showed the US corn harvest is 25% complete, this is on pace with historical averages. Good/Excellent conditions were reported at 62%, a 1% improvement from the previous week. Weekly export inspections came in at 854,000 metric tons, within the range of expectations. The USDA announced a sale of 160,020 metric tons to Mexico, this is roughly 6.3 million bushels.
Techncials: The market was little changed yesterday as prices hovered around our pivot pocket, 377 ¼-379 ½. With yesterday’s price action being relatively mute, many of our technical levels remain intact. The Bull camp continues to have the technical advantage so long as the Bulls continue to defend the pivot pocket. If the Bull camp fails to defend this pocket, we could see long liquidation take us back to the breakout point from the most recent USDA report, that comes in from 363 ¼-365 ¾. Our resistance pocket remains intact from 385-386 ¾. This was previously a 4-star pocket, but because we already tested it, we have it listed as 3-star now. Each time a significant level is tested, it becomes less powerful. Think of a wrecking ball against a skyscraper, each hit makes the structure more susceptible to it crumbling.....Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias, and proprietary levels emailed each morning.
Previous Session Bias:
Support: Soybeans (November)
Fundamentals: November soybeans chopped around on both sides of unchanged as market participants waited for new news. Yesterday’s Crop Progress report showed harvest is now 38% complete, 10% ahead of average historical paces. Good/Excellent conditions came in at 64%, unchanged from the previous week. Weekly export inspections came in at 1,667,000 metric tons, above the top end of expectations.
Technicals: The market chopped around yesterday as market participants attempt to defend their positions. The market was able to defend our pivot pocket yesterday, 1013 ¾-1018 ¼, which has kept sellers at bay. If the Bull camp fails to defend this pocket, we could see continued long liquidation take us back to the breakout point from the USDA report, 1003-1005. The Bull camp has the technical advantage until we see consecutive closes below our pivot pocket and first technical support. There is minor resistance from 1035-1037, a breakout above here likely takes us to.....Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias, and proprietary levels emailed each morning.
Previous Session Bias:
Support: Chicago Wheat (December)
Fundamentals: Export inspections yesterday morning came in at 644,000 metric tons, right at the top end of expectations. Yesterday’s Crop Progress report showed the winter wheat crop is 52% planted, 5% ahead of the average pace, 24% of the crop has emerged.
Technicals: The market made new highs for the move yesterday and is threatening to do it again today. The technical landscape remains very friendly, which could propel us to 594-600 ½. Our pivot pocket was tested and held in the overnight session; we have defined that as 577 ½-581 ¼. We want to be sellers of this market, but.....Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias, and proprietary levels emailed each morning.
Previous Session Bias:
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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.