Grain Express


Corn (March)

Fundamentals: Corn futures broke out above the psychologically significant $5.00 handle last week, finishing 35 ¼ cents higher for the week. Friday’s Commitment of Traders report showed funds added 31,976 contracts, expanding their net-long position to 360,184 contracts. Corn futures were softer Monday night but have rebounded in the early morning trade on strength from wheat, which comes as Russia announced a $1.65 export tax after March 1st. Ukraine is debating whether or not to limit corn exports, which will be decided by January 25th. Harvest of Brazils first crop is 3.4% complete, .9% ahead of last year’s pace.

Technicals: The momentum is strong and the appetite from funds remains stout as the path of least resistance continues to be up and to the right. The Commitments of Traders report is as stretched as it has ever been, which continues to be a caution flag. As mentioned, dozens of times in the recent weeks, finding meaningful technical resistance when we are in “uncharted territory” becomes a fool’s errand. First technical support comes in from........Click this link to read the FULL report and receive our daily commentary

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Support: Soybeans (March)

Fundamentals: Soybean futures were up 42 cents last week, despite another week of long liquidation from funds. Friday’s Commitments of Traders report showed funds sold 8,905 (net) contracts, shrinking their net long position to 150,541 contracts. Harvest in Brazil is .4% complete, 1.4% behind last year’s pace.

Technicals: Soybeans were under pressure in the overnight session and are treading water near our pivot pocket in the early morning trade, 1400-1407. A break and close below here could spur additional long liquidation. The RSI is at 71.23, still in “overbought” territory, but well off the levels we have recently seen. As far as technical resistance goes, we are still in........Click this link to read the FULL report and receive our daily commentary

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Support: Chicago Wheat (March)

Fundamentals: Wheat futures are firm in the overnight/early morning trade as Russia announced a $1.65 export tax on wheat, after March 1st. These headlines should not come as a surprise as we have been seeing them for the last month.

Technicals: As with many of the grain markets, the chart has looked constructive and the path of least resistance has been higher since the first headline from Russia, December 9th. As far as technical resistance goes........Click this link to read the FULL report and receive our daily commentary

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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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