Corn Futures (March)
Fundamentals: Corn futures lost some ground yesterday on broad-based weakness in the grain sector. With little new news on the wires, the market has been sideways for the last 7, going on 8 sessions. With Thanksgiving tomorrow, you can expect volume to die down today. If you still have December futures on, you will want to roll before today’s close.
Technicals: The market has been trading sideways for the better part of the past two weeks. Not the best price action for those who are looking for a lot of excitement, but there are still plenty of short-term opportunities within the recent range. Resistance comes in from 381 ¼-382 ¾. A close above here could spark a round of short covering from the funds with the next resistance coming in closer to 390. On the support side of things, 375 is the line in the sand...Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed to you each day.
Fundamentals: Futures continued to tumble on technical weakness and favorable weather in South America, which is expected to have a big crop. There have been some whispers from an analyst at a large bank that a Phase 1 trade deal could get done over the weekend, but we are not holding our breath. In previous reports, we’ve talked about the conflicting technicals and fundamentals keeping our bias at neutral (bearish technicals, optimistic fundamentals). With the market nearing support and the fundamentals still intact, we are shifting our bias towards the bullish side.
Technicals: The market drifted lower yesterday testing and holding our next support pocket from 879-882. With the market deeply oversold we noted to clients during the session that we liked this as a buying opportunity on the first test with a tight leash. A break and close below, reset the position and see if you can’t be patient for 865-869 ½.
Previous Session Bias: Neutral
Resistance: 894-895 ¾**, 909 ½-913***
Support: 879-882**, 865-869 ½****
Chicago Wheat (March)
Technicals: Chicago wheat futures gave background early in yesterday’s session but managed to hold well into the close, giving the bulls an upper hand into the holiday break. Resistance comes in from 538 ¼-540, this represents the highs from last month. A breakout above here and we could see another leg higher. We had a bearish tilt in yesterday’s report but are going back to neutral with yesterday’s reversal off the lows.....Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed to you each day.