Breaking: Chinese Vice Premier Liu He is set to visit Washington this week to sign Phase-1
Fundamentals: March corn futures have been trading sideways for the better part of the last two-weeks as market participants await new news to give us new direction. That new news may not come for another two weeks, when we get a final look at crop production and grain stocks. In the meantime, traders will keep an eye on South American weather and crop development, along with the weekly exports. Exports have been a headwind for much of 2019, but we expect to see the demand pick up as we look to kickoff 2020. Volume and participation were light last week with Christmas, we expect to see thin volume again this week with New Years on Wednesday. The weekly Commitment of Traders report will be out later this afternoon.
Technicals: We have been trading in a tight, sideways trend for the last two weeks, leaving our technical outlook little changed. We have labeled our resistance pocket as 388 ½-390 ½ and it has held for nine consecutive sessions. The fact that we have not seen a clear-cut rejection off resistance gives the bulls an advantage in the near term. Consecutive closes above resistance could spark short covering back above the psychologically significant $4.00 handle, the more significant resistance comes in from....Sign up for your FREE two-week trial!
Fundamentals: With January option expiration behind us, we turn to March futures. If you are long January beans and don’t want to risk delivery, you will want to be flat or rolled out, today. The market seems hopeful that we will continue to see China step in and buy beans from the U.S., we are in the camp that it is more out of necessity than good faith; both are good in the short term, but the divergence comes in the longer term picture. The weekly Commitment of Traders report will be out later this afternoon.
Technicals: The market has had a remarkable rally over the last month, taking prices back towards the high end of the years range. There is minor resistance from 950 ½-955, consecutive closes above here could spur a rally towards the double-top high in October, 968 ½-970. Ultimately, we would not be surprised to see....Sign up for your FREE two-week trial!
Chicago Wheat (March)
Fundamentals: Chicago wheat futures continue to climb higher on the back of a declining US Dollar, prompting a bullish stance from the funds who would assume that to lead to better exports. Though the chart is constructive, we have a hard time getting excited about Chicago wheat at these prices which keeps our bias at Neutral.
Technicals: Higher lows and higher highs have been the trend since the end of August, taking us closer to the double-top highs from June, 572 ¼-573 ½. This is significant resistance and if this objective was achieved this week, the RSI would likely be in overbought territory, setting up for a good risk/reward play to the sell side. Our bias is....Sign up for your FREE two-week trial!
Kansas City Wheat (March)
Technicals: Kansas City wheat futures continue to climb higher, marking their highest price since the middle of July. We have been optimistic on prices since September and the chart has been extremely constructive for the last four months, but the market is now the most overbought since peaking in June. Resistance comes in from 488 ½-490 ½. This pocket represents a key retracement along with previously important price points. We would not be surprised to see the market stall out here. If the bulls can achieve consecutive closes above here, we could see a surge of short covering take us back above....Sign up for your FREE two-week trial!
Techncials: Cotton futures have been climbing higher for the last two weeks on trade optimism and a constructive chart. Our 3-Star resistance pocket has been labeled as 69.07-69.20 and it appears as though the bulls may stage a breakout. This pocket represents the breakdown point from May. The chart looks really good here, but volume/participation has been light, the bulls want to see....Sign up for your FREE two-week trial!
Feel free to contact Oliver with any questions or comments
Call or Text: 312-837-3938
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.