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Grain Express | Markets pre-USDA on Friday

Corn (May)


Fundamentals: Yesterday’s crop progress report showed corn is 2% planted, in line with the historical average. Weekly export inspections came in at 1,912,000 metric tons, within the range of expectations. The monthly USDA report is on Friday, we will get an updated look at WASDE and crop production. We will have estimates out beforehand.


Technicals: May corn futures were under pressure to start the week but have recovered some of those losses in the early morning trade, after defending first support yesterday. The market has rebounded into our pivot pocket, if the Bulls can achieve a conviction close above here, we could see an extension towards the contract highs. New crop corn is lagging old crop this morning, reversing some of yesterday’s move in the spread.


Bias: Bullish/Neutral


Previous Session Bias: Bullish/Neutral


Resistance: 572**, 585*, 600*


Pivot: 559-564 ¼


Support: 550**, 536-540***

Soybeans (May)


Fundamentals: Yesterday’s weekly export inspections report came in at 298,000 metric tons, within the range of estimates. Monday weekly crop progress data for soybeans will start in the coming weeks. The monthly USDA report is on Friday, we will get an updated look at WASDE and crop production. We will have estimates out beforehand.


Technicals: May soybean futures were little changed yesterday as the market caught its breath following the previous two sessions where we saw a 92-cent range. Technical support and resistance levels remain intact for today’s trade. The Bulls want to not only defend technical support from 1390-1400, but achieve consecutive closes above our pivot pocket, 1434 ½-1436 ½. A failure to do so likely keeps us technically range bound. The November contract continues to look much more constructive.


Bias: Neutral/Bullish


Previous Session Bias: Neutral/Bullish


Resistance: 1460*


Pivot: 1434 ½-1436 ½


Support: 1390-1400**, 1364 ¼-1364 ¾**

Chicago Wheat (May)


Technicals: Chicago wheat futures rallied yesterday but failed near our first resistance pocket, 626-631 ½. If the Bulls can chew through this pocket and achieve consecutive closes above it, it could extend the relief rally and continue the bottoming process. We have had a bearish tilt for the better part of the first quarter of the year but went to outright neutral yesterday and would consider leaning bullish on a conviction close above resistance.


Bias: Neutral


Previous Session Bias: Neutral


Resistance: 626-631 ½***, 644 ½-649 ½***


Pivot: 607 ¼-610 ½


Support: 596 ½-600**, 569-572 ¾**


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