Fundamentals: Corn futures got hit hard early yesterday on spillover pressure from beans after news came out that Chinese state-owned companies wouldn’t be buying U.S. agricultural products. Hours later, it was reported by Reuters that Chinese state-owned firms buy at least 3 cargoes of U.S. soybeans for the fall. Before that news broke, we had an interview on RFD-TV where we talked about it being political rhetoric and more jawboning. Yesterday’s crop progress report showed US corn planting is 93% planted with a 74% good/excellent rating.
Technicals: Previous resistance now becomes support/pivot area, that is 320. We continue to believe there is upside potential and value near 320. A break and close below 316-317 ¾ would neutralize our bullish bias. 330-333 is the big barrier that the Bulls need to chew through to encourage another wave of short covering. A failure to do so will likely keep us range-bound.....Contact us for the FULL report!
Bias: Bullish Previous Session Bias: Bullish/Neutral
Resistance: 330-333****, 343 ¼-344 ¾** Pivot: 320 Support: 316-317 ¾***, 308 ¼-310*** 298 ¾-301 ¼** Soybeans (July)
Fundamentals: The big news yesterday morning was that China had told state owned companies to stop buying U.S. agricultural products. Shortly after that news broke, we were on RFD-TV talking about it being more of the same, political rhetoric and jawboning. Shortly after that, Reuters reported that Chinese state-owned firms buy at least 3 cargoes of U.S. soybeans for the fall. Yesterday’s Crop Progress report showed US soybean planting is 75% complete with a good/excellent rating of 70%.
Technicals: In yesterday’s report we talked about buying a dip into the low end of the range and our pivot pocket, 829-834. This pocket was tested and held, which bodes well for the Bull camp, in the near term. Technical resistance from 857-861 ¼ remains stout, but we would not be surprised to see the market move north of here in the coming weeks. A close below 818-821 would neutralize our bias.....Contact us for the FULL report!
Bias: Bullish/Neutral Previous Session Bias: Bullish/Neutral
Resistance: 857-861 ¼****, 877 ½-882 ¼*** Pivot: 829-834 Support: 818-821***, 808 ¼***, 791** Chicago Wheat (July)
Fundamentals: Yesterday’s crop progress report showed good/excellent conditions for winter wheat at 51%, down 3% from last week. The crop is estimated to be 3% harvested. Spring wheat is 91% planted with a good/excellent rating of 80%.
Technicals: Wheat futures were softer overnight but have crawled back close to unchanged. Our pivot pocket remains intact, 512 ¼-514 ¼. If the bulls can achieve a close above this pocket, we could see an extension towards the top end of the recent range and our 4-star resistance pocket, 525-529. Consecutive closes below keeps the door open for a retest of recent lows.....Contact us for the FULL report!
Bias: Neutral Previous Session Bias: Neutral
Resistance: 525-529**** Pivot: 512 ¼-514 ¼ Support: 491 ¾-494 ¼***
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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.