Grains Find Technical Relief

Corn (December)

Click here to get our daily reports emailed to you! Fundamentals: December corn futures were able to recover from weakness in yesterday’s early morning trade, helping support prices in the overnight/early morning session. Yesterday’s Crop Progress report showed that 37% of the crop is mature, harvest in the U.S. is 4% complete. As mentioned in yesterday’s report, with the USDA report behind us and weather being a diminishing factor, attention will weigh heavy on money flow and technicals.

Technicals: The market is trying to form a base in our pivot pocket from 507-514 ¼, helping to move bias with a bearish tilt to outright Neutral. If the Bulls can chew through this pocket and achieve a conviction close or consecutive closes above this pocket, we could see additional relief take us to previous breakdown points near 530.

Bias: Neutral Previous Session Bias: Neutral

Resistance: 529 ½-533***, 551 ½-555 ½**** Pivot: 507-514 ¼ Support: 493 ½-497 ½ ***, 477 ½-480 ¾**** Soybeans (November)

Click here to get our daily reports emailed to you! Fundamentals: The USDA announced another flash-sale yesterday morning, this time to the tune of 132,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year. Soybean futures are firm in the early morning trade on headlines that China was busy buying beans, 8 cargos out of Brazil, and two out of the Pacific Northwest.

Technicals: As with corn, the market is trying to build a near-term base against our pivot pocket from 1286 ¼-1292. This opens the for a potential retest to the more significant resistance pocket, 1300 ½-1306 ¾. A move out above this pocket could spark a bigger relief rally.

Bias: Neutral Previous Session Bias: Neutral

Resistance: 1300 ½-1306 ¾***, 1325 ¾-1333****, 1350-1352*** Pivot: 1286 ¼-1292 Support: 1270-1277 ¼**, 1262 ¾***, 1240 ½**** Wheat (December)

Click here to get our daily reports emailed to you! Technicals: Wheat futures are rallying back towards our pivot pocket (along with corn and beans, to their respective pivot pockets), 698 ¾-703. If the Bulls can chew through this pocket, we could see an extension back towards 718 ½-723 ½. If you had bought near technical support, either short covering or new long positions, these are near term targets to keep an eye on.

Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish

Resistance: 718 ½-723 ½***, 744 ¾-750****, 770 ½** Pivot: 698¾-703 Support: 675-680 ½****, 650-652 ½



Sign up for your FREE trial of our daily Grain & Livestock Market Analysis and stay on the pulse ahead of the data release!

Follow us on our social media sites to stay on the pulse of our latest research and commentary! Twitter - twitter.com/bluelinefutures Facebook - facebook.com/BlueLineFutures YouTube - YouTube.com/BlueLineFutures StockTwits - stocktwits.com/BlueLineFutures Latest blog posts - bluelinefutures.com/blog Blue Line Futures 312-278-0500 info@Bluelinefutures.com 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.

17 views0 comments