Grain Express

Corn (March)

Fundamentals: March corn futures accelerated to new highs yesterday as a bit of FOMO crept into the market ahead of the new year. Yesterday’s Commitment of Traders report (usually released on Fridays) showed funds were net buyers of 19,173 contracts, extending their net long position to 297,888 contracts. We saw the first flash sale since December 11th yesterday, which showed a sale of 149,572 metric tons of corn for delivery to unknown destinations during the 2020/2021 marketing year.

Technicals: So long as we continue to make new contract highs, we will likely sound like a broken record. The market is in uncharted territory, coupled with an abbreviated holiday trading week makes finding meaningful resistance a fool’s errand. There are continuous charts that some use, but we do not put much weight into those for agricultural commodities (continuous charts are great for some futures contracts like gold, silver, S&P). The RSI is at 77.09, the most overbought since marking a near term top at the end of October. From October 25th-October 29th we saw the market trade 25 ¾ cents lower before resuming the uptrend. The path of least resistance has........Click this link to read the FULL report and receive our daily commentary

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Support: Soybeans (March)

Fundamentals: March soybean futures made new contract highs Sunday night but retreated as much as 33 ½ cents from those highs, a prime example of why we always say: “take the overnight trade with a grain of salt”. We look for volume to confirm the price, and the volume in the overnight session just is not there. We saw the first flash sale since December 11th yesterday, which showed sales of 233,700 metric tons of soybeans for delivery to unknown destinations during the 2020/2021 marketing year and sales of 125,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year.

Technicals: We have said it a million and one times: “take the overnight session with a grain of salt”. Sunday night we saw some FOMO (fear of missing out) sweep into the market which took us to new highs, only to get sold into on when we got more participation on the floor open. Market participants have been conditioned to believe buying every pullback is easy. However, there are no free lunches. From these levels, the market has the ability to inflict a lot of pain while remaining in an upward trajectory. The RSI (relative strength index) is at 73.13, below where it was yesterday, but still in “overbought territory”. The market is hovering in our pivot pocket, which remains intact and will be watched closely today, that........Click this link to read the FULL report and receive our daily commentary

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Support: Chicago Wheat (March) Technicals: Chicago wheat futures took a tumble yesterday, but managed to mark higher lows, for now. We continue to believe the market is overvalued, but even with yesterday’s price action, the chart has been fairly constructive over the last month. Our bias........Click this link to read the FULL report and receive our daily commentary

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Blue Line Futures

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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.

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