Lack of News This Time Of Year In Grain Markets

Shot clock is winding down on March futures so we will be shifting to May
Grain futures market update

Grain futures market update

Corn Futures (March)

Fundamentals: March corn futures slipped lower yesterday but remain trapped within the range amid time of year that offers a lack of news to break the market out or down. The bear camp had the opportunity to beak the market following Tuesday’s USDA report, but there seemed to be a sellers strike at these levels, an encouraging sign in our opinion. For this reason, we moved our bias to outright Bullish Wednesday. We are going into a long weekend, adding additional risk with the market closed an extra day. Yesterday’s weekly export sales came in at 968,800 metric tons, 22% below last week’s report and 9% below the 4-week average.

Technicals: The market remains range bound, but we are optimistic about prices in the near term. With prices at the low end of the range, we see this as a good risk/reward situation to the buy-side. With that said, there is still some work to do on the charts. First resistance comes in from 384 ¾-387 ¼, consecutive closes above here could spark a bigger rally. The must hold support pocket is 375 ¼-377 ¾. With the shot-clock winding down on the March contract, you may want to consider using the May contract, or going further out than that.  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.

Bias: Bullish/Neutral

Previous Session Bias: Bullish

Resistance: 392-394 ¼***, 407 ¾-411 ¾****

Pivot: 384 ¾-387 ¼

Support: 375-377 ¾***, 365-365 ¾****
 

Soybeans (March)

Fundamentals: Soybeans have staged a nice rally this week, taking us within a stones throw of the psychologically significant $9.00 handle. Some of this is likely in anticipation of the Phase-1 agreement officially kicking off tomorrow, the 15th. The concerns around coronavirus are real, but it is very hard to quantify the spillover affects just yet. We are going into a long weekend, adding additional risk with the market closed an extra day. We moved our bias to Bullish/Neutral on Wednesday but will be tightening things up before the close.

Technicals: The market ran up against our technical resistance pocket yesterday, we have defined that as 900-905 ¾. Though we could see a bump above here we think this may be a magnet into next week’s option expiration, there are about 13,000 calls at the $9 strike. Previous resistance now becomes support, that comes in from 888 ¼-890 ½. We are moving our bias back to Neutral. 

 

Chicago Wheat (March)

Technicals: The market managed to hold first support this week, we’ve defined that as 538 ½. The ability to defend this level has led to a consolidation higher, which we will be looking to resell with clients. Lower highs and lower lows have been the trend over the last month, creating a bearish head and shoulder pattern on the chart. Previous support now becomes resistance, we see that as 550-552 ¾. This pocket represents the 50-day moving average, a trendline from the contract lows, and the breakdown point from earlier in the week.

 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.

 

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