Fundamentals: We are in that time of year where headlines slow down and trading ranges tighten up. Outside of weekly export and harvest data, there is little new news expected until we get to next Friday’s WASDE report. The bulls desperately need to see the demand structure brighten up to boost prices, lower production will not be able to do it on its own. In the meantime, traders will be focusing in on money flow and technicals.
Technicals: Early morning weakness in yesterday’s trade took prices within a ½ cent of our 4-star support pocket, we have had that defined as 377-381 ½. This pocket represents the 50-day moving average, a key Fibonacci retracement, and the lows from the August 10th USDA report. We continue to believe....Sign up for your FREE two-week trial!
Fundamentals: January soybeans started yesterday’s session with a bang but ran out of gas as optimism around a phase-one trade deal diminished. A US trade official said that if there’s no deal signed in Chile, that doesn’t mean the trade talks have fallen apart, it just beans it will take more time. This comes to no shock as we have cautioned against holding your breath for a trade deal. To maximize the headlines, a trade deal is more likely to happen closer to the election and it will probably come from U.S. concessions; this is not a political statement, it just makes sense from looking at both sides.
Technicals: The market failed for the second straight day at our pivot pocket, we have defined that as 940-941 ½. If the bulls cannot find the strength to achieve consecutive closes above here, we could see more pressure come into the market. First significant support remains intact from....Sign up for your FREE two-week trial!
Chicago Wheat (December)
Fundamentals: December wheat futures continue to slide lower as the higher prices raise concerns over demand. There is not a lot of new news which has money flow and technicals leading the way. We are cautious on the Chicago contract but continue to feel there is more value in Kansas City. Perhaps next Friday’s WASDE report will be the one to get that spread back to narrowing.
Technicals: The market is bleeding into our four-star support pocket; we have defined that as 500-506 ¼. This pocket is psychologically significant, but it also contains the 100 and 200 day moving average, trendline support, and other previously important price points. If you’re....Sign up for your FREE two-week trial!
Kansas City Wheat (December)
Technicals: Kansas City wheat futures are continuing to hold support; we have defined that as 415 ½-420. The inability to bounce off support should have the bulls acting more cautious. A break and close below could take us closer to....Sign up for your FREE two-week trial!
Technicals: It’s the same story, just another day. The market is consolidating in our resistance pocket, we have defined that as 65.00-65.85. We are cautiously optimistic here but the inability to breakout coupled with the tails left on the chart indicate that we could see....Sign up for your FREE two-week trial!
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