• Oliver Sloup

Grain Express



Grain futures are getting hit hard in the overnight and early morning session as profit-taking feeds on itself and accelerates the selling, ahead of the end of the month, and election. Money flow has controlled much of the rally and will be a significant catalyst on the way down too. We had mentioned to clients yesterday afternoon that the volume was picking up on the sell side, more volume than we saw during the last push higher, indicating a bigger urgency to sell. A surging US Dollar is also adding a headwind to the market in the early morning session.

Corn (December)

Technicals: The market broke below our pivot pocket which has accelerated the selling towards our 4-star support pocket, 400-405, a level we mentioned in our RFD-TV interview on Monday. This is not only technically significant but also psychologically significant. The move lower today has brought the RSI back below overbought territory, reading 60.28 this morning.

Bias: Bearish Previous Session Bias: Neutral/Bearish

Resistance: 423-425*** Pivot: 409-411 ¼ Support: 400-405****, 385-386 ¾*** Soybeans (January)

Technicals: Soybean futures are erasing gains from the last week and the floor is not open yet. Does this mean the top is in? Not necessarily, but the way funds are positioned, and yesterday’s order flow certainly favors a near term top at the very least. The market has broken below first support which opens the door for a run at 4-star support 1046 ¾-1050, this is technically and psychologically significant. If the Bulls fail to defend this area, we could see a swift move lower, taking us into the 1020 region.

Bias: Bearish Previous Session Bias: Neutral/Bearish

Resistance: 1085 ¼-1087 ¾**, 1100*** Pivot: 1063-1064 ¾ Support: 1046 ¾-1050****, 1020-1028 ¼**** Chicago Wheat (December)

Technicals: Chicago wheat futures have been softening up over the last few sessions after failing to make new highs, which led to lower highs and lower lows. That selling has accelerated in the early morning trade with a broad-based risk-off sentiment taking hold of “markets” in general as participants look to square up positions ahead of the election and end of the month. The market is testing first support this AM, we have defined that as 599-603 ½. A break and close below this pocket could accelerate the selling.

Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish

Resistance: 636 ¾-640** Pivot: 615-620 Support: 599-603 ½***, 578 ¼-584 ¼***


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