• Oliver Sloup

Grain Express


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Corn (December)


Fundamentals: Corn futures are continuing higher this morning, making new highs for the move. This morning’s weekly export sales report showed net sales of 1,225,700 MT for 2020/2021 primarily for Japan (360,100 MT, including 39,600 MT switched from unknown destinations and decreases of 41,500 MT), Mexico (332,700 MT, including decreases of 1,300 MT), and unknown destinations (310,900 MT). Attention has shifted towards tomorrow’s USDA report, out at 11:00 AM CT. The average analyst estimate for yield comes in at 177.7 bushels per acre, this would be .8 lower than the previous report. This would put production at 14.808 billion bushels. Ending stocks are expected to come in near 2.113 billion bushels.


Technicals: The market has made new highs for the move, bringing the RSI (relative strength index) into “overbought territory”. As mentioned in yesterday’s Tech Talk, the Bull camp remains in control which could continue to press prices closer to the psychologically significant $4.00 handle. Previous resistance now becomes support, we see that .....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.

Bias:

Previous Session Bias:

Resistance:

Support:

Soybeans (November)


Fundamentals: November soybean futures have made new contract highs in the early morning trade as funds continue to pile in ahead of tomorrow’s USDA report, out at 11:00 AM CT. The average analyst estimate for a national yield is 51.6 bushels per acre, this is .3 lower than last month. That would put production at 4.282 billion bushels. Ending stocks are estimated to come in near 369 million bushels. This morning’s export sales report showed net sales of 2,590,700 MT for 2020/2021 were primarily for China (1,538,100 MT, including 449,000 MT switched from unknown destinations and decreases of 15,100 MT).


Technicals: The market-making new contract highs has brought the RSI back into “overbought” territory, with a reading of 75.20. We have seen the RSI as high as 85.90 in the last month. With the market at new contract highs, we are in uncharted territory, making it difficult (more of a fool’s errand) to find meaningful technical support. 1050 is psychologically important. The chart is bullish, no doubt. But the fund length is approaching overextended territory (record net long position), which leaves a lot of risk to the downside. That is not to say we cannot grind higher first, but the risk/reward does.....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.


Bias:

Previous Session Bias:


Resistance:

Support:

Chicago Wheat (December)


Technicals: Chicago wheat futures made new highs yesterday and are using that momentum to make new highs again in the early morning trade. The RSI (relative strength index) is at 71.82, the highest reading January when we made (old) contract highs. As mentioned in our Tech Talk, yesterday, finding resistance when we are trading at new highs becomes a bit of a fool’s errand. As mentioned for the last week+, We want to be sellers of this market, but the technicals are far too friendly to be aggressive sellers just yet. Our bias remains Neutral.....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.

Bias:

Previous Session Bias:


Resistance:

Support:



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