Wheat Rally On Short Covering From Oversold Levels

Traders waiting for next Thursday’s USDA report
Chicago wheat managed to stage another rally
Soybean futures got smoked yesterday, finishing down 12 ¾ cents
Grain futures market update

Grain futures market update

Corn Futures (December)
 

Fundamentals: December corn futures finished yesterday’s session up 1 ½ cents, the first positive close in five sessions. Market participants are awaiting next Thursday’s USDA report to get an updated look at meaningful data, until then not a lot of new news is expected. Export sales this morning came in at 250,800 metric tons. Concerns over an early frost are minimal currently.

Technicals: Not much has changed on the technical front over the last 24-hours as the bears remain in full control, in uncharted territory. The market is trying to firm in the morning, but that has been faded recently. The bulls need to see the market stabilize above previous contract lows to bring back the glimmer of hope for forming a bottom.

Bias: Neutral/Bullish

Previous Session Bias: Neutral/Bullish

Resistance: 377-381**, 392 ¾***, 405-407**

Pivot: 363 ¾

Support: 338 ¾-343**

 

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Soybeans Futures (November)

Fundamentals: November soybean futures got smoked yesterday, finishing the session down 12 ¾ cents. Much of the pressure was technical in nature, but also due to decreased concerns of an early frost. US and Chinese officials are set to meet in early October, this continues to be a kick the can down the road event, we expect that to hold true until we get closer to the next U.S. Presidential election. Export sales this morning came in at 857,800 metric tons.

Technicals: The market tested our first resistance and support pockets yesterday, nearly 25 cents apart. We had labeled first resistance as 880-882, the market came close but failed just shy of this pocket over the last two sessions. The inability to break through resistance invited sellers back into the market at higher prices. Yesterday’s reversal took prices down near our 4-star support pocket, we have had that listed as 852 ½-856 ½. This is a MUST hold pocket for the bulls. A break and close below leaves the door open for a run at contract lows.

Bias: Neutral/Bullish

Previous Session Bias: Neutral/Bullish

Resistance: 880-882**, 891 ½-896 ¾***, 921-924***

Support: 852 ½-856 ½****, 839 ¾-843 ¾**, 815 ½****

 

 

Wheat Futures (December)

Fundamentals: Chicago wheat managed to stage another rally in yesterday's session, likely thanks to short-covering from an oversold position. Export sales this morning came in at 312,100 metric tons. Non-farm payroll data was released this morning which has pumped more volatility into the currencies, that could spill over into volatility in US dollar-based commodities.

Technicals: Chicago wheat has been working hard to work higher, widening the spread with the KC contract. The market is working above our pivot point at 460 which opens the door for a run at 483 ½. That will be a battleground area for the bulls and bears. A conviction close above could be trend changing.

Bias: Neutral/Bearish

Previous Session Bias: Neutral/Bearish

Resistance: 483 ½**, 493-500****, 525 ¾-531 ½****

Pivot: 460

Support: 442-446**, 427 ¼****

 

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