Breaking News: The United States carried out an airstrike last night, taking out Iranian general, Qassem Soleimani. People more familiar with politics in the middle east have said that this is more noteworthy than the killing of Osama Bin Laden and have drawn comparisons of a US Vice President being taken out. This has added extra volatility in the overnight and early morning trade. There are concerns that this could throw a wrench into trade negotiations with China, that coupled with a stronger US Dollar has led to pressure in the grain complex. This is a fluid situation, with the time frame pending on what the potential retaliatory actions may be.
Fundamentals: Export sales this morning came in at Export sales this morning came in at 531,400 metric tons, down 15% from the previous week and down 43% from the 4-week average. Argentina’s planting progress is near 85%, weather and crop development will continue to be monitored closely. The next big-ticket item will be the January 10th USDA report, we will be positing estimates in the coming days. Our bias has been Bullish, but the events of last night have put us on defense, moving our bias to Neutral/Bullish.
Technicals: Corn futures managed to close above technical resistance, but the conviction was lacking. The bulls need to see consecutive closes above 390 ½ to encourage that next wave of short covering. On the support side of things....Sign up for your FREE two-week trial!
Fundamentals: March soybean futures are under pressure this morning on concerns that the airstrike on Iranian general Qassem Soleimani may throw a wrench into trade negotiations with China. Export sales this morning came in at 330,300 metric tons, down 55% from last week and 66% below the 4-week average. The next big-ticket item will be the January 10th USDA report, we will be positing estimates in the coming days. Our bias has been Neutral and remains Neutral this morning. We would like to look at the short side if we see a rally towards our more significant technical resistance levels.
Technicals: The market moved out above our pivot pocket but failed to hold those gains into the close, the top end of that coming in at 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: Export sales this morning came in at 312,900 metric tons, down 56% from last week and down 46% from the 4-week average. The US Dollar is finding strength in the overnight and early morning trade, adding a headwind to the overbought market.
Technicals: Chicago wheat futures made new highs for the move yesterday but failed to sustain that price action through the close. We don’t see much value in wheat in the mid-$5 range, but the chart has been constructive. We would like to be on the short side but will....Sign up for your FREE two-week trial!
Kansas City Wheat (March)
Techncials: KC Wheat futures soared higher but reversed into the afternoon session, leaving an ugly candle that has led to spillover weakness this morning. Key support comes in from....Sign up for your FREE two-week trial!
Fundamentals: Ag markets are under pressure this morning as global concerns rise along with the US Dollar. Weekly export sales came in at 246,200RB, 82% higher than last week and 19% above the 4-week average.
Technicals: March cotton futures are running out of gas for the time being, but the trend of higher lows and higher highs is still intact. The bulls will want to defend technical support, we see that as....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.