Fundamentals: Corn futures continue to drift lower on the back of harvest pressure and a lack of flashy bullish headlines. This afternoon’s crop progress report is expected to show corn harvest at 47% complete, well behind the five-year average pace, 64%. We’ve heard numerous reports of below trend yields and we have not even gotten to the thick of the late planted crop. We are optimistic on prices and believe the USDA has room to walk back production estimates, but the demand or lack thereof, continues to be the thorn in the side for the bull camp. Friday’s Commitment of Traders report showed funds sold 9,194 contracts through October 22nd, extending their net short position to 76,055.
Technicals: The slow grind lower has taken prices closer to our first support pocket, we have defined that as....Sign up for your FREE two-week trial!
Fundamentals: In our Friday morning report we wrote: “Typically strike prices with high open interest tend to act as a magnet, with many of those being below the market we could see pressure into the weekend.”. With option expiration behind us the volume will shift to the January contract. The fundamental focus is largely on harvest, the kicker/wild card is a phase 1 deal with China. The phase 1 deal could be inked as early as November 15th when the two sides meet at a summit in Chile (we are not holding our breath). Today’s Crop Progress report is expected to show soybean harvest at 65% complete, 13% behind the five-year average. Friday’s Commitment of Traders report showed funds bought 19,783 contracts through October 22nd, extending their net long position to 68,822 contracts.
Technicals: Friday’s breakdown took prices to our three-star technical support pocket, 915 ¼-920 (November). We also noted that this is a pocket we would....Sign up for your FREE two-week trial!
Chicago Wheat (December)
Fundamentals: Chicago wheat continues to slide lower after failing against significant resistance last week. With little bullish headlines on the wire the market fell victim to broad based selling in grains to round out the week. The US Dollar managed to rebound last week, that certainly didn’t help the bull case. Friday’s Commitment of Traders report showed funds bought 22,664 contracts through October 22nd, putting them net long 12,099 contracts.
Technicals: The market tested and held support at 515 ¼ on the first test, but the inability to retain momentum on the bounce led to a retest and the eventual breakdown. We often look at technical levels like a wrecking ball against a skyscraper, each time it is hit, the weaker it becomes. The next support pocket comes in from....Sign up for your FREE two-week trial!
Kansas City Wheat (December)
Technicals: Kansas City wheat futures drifting lower to start the week, testing our first support pocket from....Sign up for your FREE two-week trial!
Technicals: December cotton futures are struggling to breakout above our four-star resistance pocket, 65.00-65.85. If the bulls continue to fail here, we could see the market pull back towards....Sign up for your FREE two-week trial!
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