Fundamentals: Corn prices continued to grind higher yesterday, riding a wave of optimism that started last week (which we covered in the past several reports). Weekly Export Inspections came in at 687,000 metric tons, above the top end of estimates. The string of good news my start to fizzle out, so the bulls will want to see closes above technical levels to spur additional short covering and keep the wave moving.
Technicals: The market has made a run towards the 50 and 100 day moving average, 388 ½ and 390 ½, respectively. This pocket also contains previously important price points, including the breakout point from the September 30th quarterly stocks report, and then support during the October USDA report. If the bulls can achieve consecutive closes above here, we could see additional short covering take us back above the psychologically significant $4.00 handle. The more meaningful technical target doesn’t come in until....Sign up for your FREE two-week trial!
Fundamentals: Soybean futures have been strong, closing the last 10 of 11 sessions higher and as much as 57 ½ cents off the lows from two weeks ago; the concept of trading is to buy low and sell high(er). The recent headlines have been friendly, no doubt about it, but we would tread lightly for a few reasons. One, we’ve already rallied in anticipation of this news, what more good news is lingering? Two, the Phase-1 deal could be another over promise, under deliver scenario. We also have January option expiration next week which could keep things in check. Weekly export inspections came in at 1,259,000 metric tons, within the range of expectations. NOPA crush came in at 164.909 million bushels, below the low end of estimates.
Technicals: The market managed to hold gains through the afternoon and close near the session highs, leading to some follow through in the overnight/early morning trade. In yesterday’s report we talked about the potential for the market to run towards our 4-star resistance pocket....Sign up for your FREE two-week trial!
Chicago Wheat (March)
Fundamentals: Wheat futures were the leader yesterday, marking their highest price since topping out in June. Weekly Export Inspections came in at 506,000 metric tons, a notch above the top end of expectations.
Technicals: The market made new highs for the move yesterday but is lacking follow through in the overnight/early morning session. Previous resistance now becomes support, we see that as 544-546 ½. If the bulls can defend this pocket on a closing basis, we could see a....Sign up for your FREE two-week trial!
Kansas City Wheat (March)
Technicals: March Kansas City wheat futures traded higher yesterday, taking out the 200-day moving average intraday, but finishing the session right on it. That moving average comes in at 459 ¾ and will be our pivot point in today’s session. If the bulls fail to defend this going into the close, we could see some air come out of the balloon. Previous resistance now becomes support, we see that as....Sign up for your FREE two-week trial!
Technicals: March cotton futures traded both sides of unchanged yesterday before finishing near the flat line. The inability to maintain strength is a bit of a caution flag for the bull-camp, but they still have a slight advantage. The market is hovering near our pivot pocket this morning, the bulls will want to defend this on a closing basis to encourage another leg higher, that comes in from....Sign up for your FREE two-week trial!
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