Grain Express | Pre-WASDE Action

Corn (May)


Fundamentals: This morning’s weekly export sales report showed net sales of 757,000 MT for 2020/2021 were down 5 percent from the previous week and 54 percent from the prior 4-week average. Conab raised their Brazilian production forecast to 108.966 million metric tons, up from 108.069. Market participants are awaiting tomorrow’s USDA report, out at 11:00 AM CT. Click this link to view USDA report estimates and watch yesterday’s Tech Talk.


Technicals: May corn futures gained some ground yesterday and are finding some follow through in the early morning trade, inching out above our pivot pocket, 559-564 ¼. We mentioned the significance of this pocket in yesterday’s Tech Talk. If the Bulls can achieve consecutive closes above here, it would likely spark a bigger move higher, potentially taking us to retest the contract highs at 585.


Bias: Bullish/Neutral


Previous Session Bias: Bullish/Neutral


Resistance: 572**, 585*, 600*


Pivot: 559-564 ¼


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

Soybeans (May)


Fundamentals: This morning’s weekly export sales report showed net sales reductions of 500 MT for 2020/2021 were down noticeably from the previous week and from the prior 4-week average. Conab raised their Brazilian production forecast to 135.540 million metric tons, up from 135.132. Market participants are awaiting tomorrow’s USDA report, out at 11:00 AM CT. Click this link to view USDA report estimates and watch yesterday’s Tech Talk.


Technicals: May soybean futures were under some minor pressure yesterday, but the weakness did little to change the technical landscape. We remain upbeat on soybeans, but the Bulls need to get some momentum going soon. 1434 ½-1436 ½ is the pocket that we want to see consecutive closes out above. If the Bulls can chew through this pocket, we could see an extension towards contract highs and possibly beyond, 1460. 1390-1400 remains support, a break and close below here would neutralize our bias.


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)


Fundamentals: This morning’s weekly export sales report showed net sales of 82,000 metric tons (MT) for 2020/2021--a marketing-year low--were down 67 percent from the previous week and 75 percent from the prior 4-week average. Market participants are awaiting tomorrow’s USDA report, out at 11:00 AM CT. Click this link to view USDA report estimates and watch yesterday’s Tech Talk.


Techncials: Chicago wheat futures are making another attempt to get out above our first resistance pocket, 626-631 ½. We talked about the significance of this pocket in yesterday’s Tech Talk. We neutralized our bearish bias at the start of the week and would consider wading into bullish territory if we see the mark achieve a conviction close, or consecutive closes above our resistance pocket.


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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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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