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

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