Fundamentals: Weekly export inspections came in at 460,307 metric tons, towards the low end of estimates. The USDA did report a sale of 137,000 metric tons to South Korea. With the USDA report behind us, much of our attention will be on money flow and technicals. Funds are still short roughly 80,000 contracts, strong technical closes could squeeze shots and cause a bigger short covering rally.
Technicals: Corn futures traded higher yesterday on technical short covering, spilling over into moderate overnight/early morning strength. 390 ½-392 has been and remains our significant resistance pocket, representing the top end of the recent range, along with other previously important price points. A conviction close above here would likely trigger a bigger wave of technical short covering. Our bias going into this week’s trade is Bullish/Neutral, closes above technical resistance would change that to outright Bullish....For the full report, sign up for your FREE two-week trial!
Fundamentals: Soybean futures were mixed yesterday as much of the optimism around Phase-1 deal seems to be priced in (see the 75-cent rally in December for reference). Export inspections yesterday came in at 1,136,304 metric tons, this was a notch above the top end of estimates. Weather in South America continues to be favorable for crop development. If you’re looking to hedge, these are prices to consider dipping your toes in.
Technicals: The market has been treading near our support pocket for the last seven sessions, we’ve defined that as 933 ¾-937 ¼. If you’re bullish, you want to see a springboard reaction off support, the fact that we are lingering down here should be concerning. A break and close below support opens the door for a potential drop to 920-922 ¾. This pocket represents a key retracement, the 200-day moving average, and several previously important price points. We are giving our bias a bearish tilt until we see consecutive closes above....For the full report, sign up for your FREE two-week trial!
Chicago Wheat (March)
Fundamentals: Chicago wheat futures were under moderate pressure yesterday but managed to turn the tide in the overnight/early morning trade. Weekly export inspections came in at 473,960 metric tons, towards the top end of estimates. At these prices we see minimal value to the buy-side, this has kept our bias at neutral (a more bullish tilt on KC wheat). With prices inching towards technical resistance we will begin looking to become more bearish on a confirmed failure.
Technicals: The trend of higher lows and higher highs remains intact and a retest of the double top highs from June remains probable. That resistance pocket comes in from 572 ¼-573 ½. Perhaps the market searches for stops above this pocket, but we would look at this as an opportunity to sell on the first test. The RSI is at 67.43, approaching overbought conditions. On the support side....For the full report, sign up for your FREE two-week trial!
Kansas City Wheat (March)
Technicals: Kansas City Wheat future are back at Friday’s highs and pressing up against physiologically significant resistance at the $5.00 handle. If we can achieve consecutive closes above this pocket, we would look for a swift move towards 509 ¾-513. Keep in mind that the RSI is at 71.64, technically “overbought”. The longer-term target for the bull camp is....For the full report, sign up for your FREE two-week trial!
Technicals: Cotton futures have been mixed in the overnight/early morning trade as we await more participation. The chart continues to look extremely constructive, keeping the bull camp in control. The next meaningful resistance pocket comes in....For the full report, 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.