rounded corner
rounded corner
top border

Grain Futures Disappoint


Bookmark and Share

Corn (July) Fundamentals: Corn futures are softer in the overnight session as broad-based weakness in the grain sector over the last 24 hours has kept buyers at bay. Export sales yesterday morning came in at 884,200 metric tons for 2019/2020, within the range of expectations but down 18% from last week and 10% below the 4-week average.


Technicals: We started the week on solid footing, but the market fell flat against our technical resistance pocket which has led to a disappointing trade in the back half of the week. Prices are now back to the low end of our pivot pocket, 316-317 . The Bulls need to defend this on a closing basis, a failure to do so would neutralize our bias and potentially open the door for a run at the contract lows, 309.


Bias: Bullish/Neutral Previous Session Bias: Bullish


Resistance: 320-325***, 330-333****, 343 -344 ** Pivot: 316-317 Support: 308 -310*** 298 -301 **


Soybeans (July) Fundamentals: Soybean futures gave back a lot of hard earne ground yesterday as headlines suggested rising tensions between the U.S. and China. That has carried over into some overnight weakness ahead of a three-day weekend. Yesterdays weekly export sales came in at 1,205,000 metric tons, above the top end of expectations, 99% higher than last week and 80% above the 4-week average. Primary increases came from China and Unknown (likely China). It would be great to see some more flash sales pop up, that would certainly help rejuvenate some of the diminishing optimism.


Technicals: The market has retreated towards the low end of our pivot pocket, as with corn, this is a must hold area. 829-834 has been an inflection point for us, if the Bulls fail to defend this pocket we could see a retest of contract lows. Lower highs were made this week an we have made lower lows this morning, not a good development for the Bull camp.


Bias: Neutral/Bullish Previous Session Bias: Bullish/Neutral


Resistance: 857-861 ****, 877 -882 *** Pivot: 829-834 Support: 818-821***, 808 ***, 791**


Chicago Wheat (July) Technicals: July wheat futures have been playing right into our technical road-map for the last week, nearly to a T. We held support from 491 -494 which opened the door for a run into the mid 520s, a spot yesterday that we said: If you had reduced shorts or bought technical support, you may consider reducing or putting shorts back on in the mid 520s as the bear trend is still intact and this is a relief rally for the time being..


Bias: Neutral/Bearish Previous Session Bias: Neutral


Resistance: 525-529**** Pivot: 512 -514 Support: 491 -494 ***


Sign up for a FREE trial of our daily commodity reports!

If you have questions about markets, trading, or opening an account, let us know!

You can email us at info@BlueLineFutures.com or call 312-278-0500


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.



Recent articles from this author



About the author


Oliver Sloup is Vice President of Blue Line Futures, a leading futures and commodities brokerage firm located at the Chicago Board of Trade. Blue Line Futures mission is to put the customer first, and that means bringing YOU the best customer service, consistent and reliable research and state of the art technology.  Oliver has been a guest on CNBC and Bloomberg, among others.  Oliver has over a decade of trading experience. Prior to Blue Line Futures, Oliver worked as the Director of Managed Futures at iiTRADER.

 

 

Contributing author since 10/6/17 

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2020 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy