Markets are closed tomorrow; we will see you in the roaring 20's!
Fundamentals: Corn futures lost ground yesterday on the back of poor export inspections and a relatively thin market. Yesterday’s Commitment of Traders report showed funds bought back 9,254 contracts, trimming their net short position to 86,717. Sideways has been the trend for the last two weeks and we could see that continue until we get new news from the January USDA report.
Technicals: The market did little to shift the technicals in yesterday’s session, keeping many of the support and resistance levels intact. 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: March soybean futures managed to rally yesterday on rumors that the Chinese Vice Premier Liu He will be in the US to sign the Phase-1 trade agreement. Some are wondering if this has been priced into the market, considering we have rallied nearly 70 cents this month. Export inspections came in at 911,000 metric tons, within the range of expectations. Yesterday’s Commitment of Traders report showed funds bought 46,252 contracts, trimming their net short position to just 33,888.
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....Sign up for your FREE two-week trial!
Chicago Wheat (March)
Fundamentals: Export inspections yesterday came in at a disappointing 312,000 metric tons, erasing gains from the early morning trade. The market has found its footing in the overnight trade, but the participation is sparse. The US Dollar is making new multi-month lows this morning, that should be beneficial to commodities like wheat.
Technicals: Not much has changed from yesterday’s session, on the technical landscape. 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 at Neutral, but a test and failure of resistance would change that to short term Bearish....Sign up for your FREE two-week trial!
Kansas City Wheat (March)
Technicals: Kansas City wheat continues to climb, in part to a struggling US Dollar which props up prospects of higher demand going into the New Year. Higher lows have been followed by higher highs for the last 4-months. 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 to....Sign up for your FREE two-week trial!
Technicals: Cotton futures managed to close above our pivot pocket which keeps the trend intact, higher. The bulls will need to defend this going forward, 69.07-69.20. This pocket represents the breakdown point from May. Minor resistance comes in from....Sign up for your FREE two-week trial!
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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.