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Fundamentals: Corn futures were mostly sideways for the last two weeks of the year as many market participants took a holiday break, leading to a thin volume trade. Meaningful new news has been hard to come by, but that could change with the January 10th USDA report right around the corner. This report will include final production numbers and US/World ending stocks.
Technicals: With the market range-bound for the better part of the last two weeks, our technical support and resistance levels remain intact. We have labeled our resistance pocket as 388 ½-390 ½ and it has held for 11 consecutive sessions. The fact that we have not seen a clear-cut rejection off resistance gives the bulls an advantage in the near term. We like being long corn to start 2020, 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 finished the last month of the year on a high note, trading and closing at their highest price since the end of October. Phase-1 of the trade “deal” is expected to be signed on January 15th. We’ve had a heck of a rally over the last month, roughly 75 cents, a lot of the good news may be priced into the market. If you’re a producer and looking to hedge, this is not a bad spot to consider dipping the toes in. The next big-ticket item on the fundamental side of things will come with the January 10th USDA report, we will have estimates out in the coming days.
Technicals: The market managed to close a hair above the top end of our resistance pocket, we have defined that as 955. If the bulls can achieve consecutive closes above here, we could see a continuation of short covering take us towards....Sign up for your FREE two-week trial!
Chicago Wheat (March)
Fundamentals: The US Dollar got taken to the woodshed in the final three days of the year, helping boost some commodities, including wheat. A softer US Dollar makes commodities priced in dollars more attractive and could help boost demand. Though the chart has been extremely constructive, we have a hard time getting excited about being long Chicago wheat from the mid $5.00 range. We continue to see more value in the KC contract.
Technicals: Chicago wheat futures made a nice run in the last quarter of the year, rallying over a dollar off the contract lows. 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)
Techncials: Kansas City wheat futures managed to finish the year on a high-note, trading at its highest price since July. 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 above....Sign up for your FREE two-week trial!
Techncials: March cotton futures managed to grind higher in the final month of the year, taking prices back to previous resistance levels from the end of May and beginning of June. If the bulls can chew through this pocket, we could see an extension towards....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.