Blue Line – Grain Express August 3rd, 2021
 |
| Corn (December) Fundamentals: Yesterday’s Crop Progress report showed Good/Excellent conditions at 62%, a 2% decline from last week and 1% below the average estimate. Cooler overnight temperatures are welcomed but adding a headwind to prices in the early morning trade. StoneX will be putting out their yield estimates after the close, this will put a line in the sand for other analysts. Technicals: The market is coiling like a tightly compressed spring, ready for a breakout or break down. Grain futures tested and held the 100-day moving average yesterday and again got a nice relief rally off it, trading up into our 3-star resistance pocket, 557 ¾-560 ¾. If the Bulls can chew through this pocket, we could see an extension towards 569 ¼-573 ½. This pocket represents the top end of the range from mid-late July, as well as the gap from July 6th. A failure against resistance and break below our pivot (532 1/4-539 1/2) could take us back to the low end of the range and yesterday’s support, 532 ¼-539 ½. Sign up for a Free Trial at Blue Line Futures to have our entire fundamental and technical outlook, actionable bias, and proprietary levels for the markets you trade emailed each morning. Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish Resistance: 557 ¾-560 ¾***, 569 ¼-573 ½****, 588 ½-591 ¼*** Pivot: 547-552 ¼ Support: 532 ¼-539 ½****, 507-514 ¼****, 497 ¼-500 ¼** Soybeans (November) Fundamentals: Yesterday’s Crop Progress report showed Good/Excellent conditions at 60%, a 2% increase from last week and 3% above the average estimate. Cooler overnight temperatures are welcomed but adding an additional headwind to prices in the early morning trade. StoneX will be putting out their yield estimates after the close, this will put a line in the sand for other analysts. Technicals: The market tested and held the 100-day moving average and July 26th lows, during yesterday’s session, but futures are threatening to take support out, 1325 ¾-1333. A break and close below this pocket would put our bias in Bearish territory and could open the door for technical selling to take us back to the psychologically significant $13.00 handle. This would move our bias into bearish territory. The Bulls need to achieve a conviction close above 1379 ½-1387 ½ to put the ball back in their court. Sign up for a Free Trial at Blue Line Futures to have our entire fundamental and technical outlook, actionable bias, and proprietary levels for the markets you trade emailed each morning. Bias: Neutral Previous Session Bias: Neutral Resistance: 1379 ½-1387 ½****, 1398-1401***, 1414 ¾-1423** Pivot: 1365-1370 Support: 1325 ¾-1333***, 1300 ½-1306 ¾*** Chicago Wheat (December) Technicals: Yesterday’s move above resistance from 723 ½-725 has moved our bias from Neutral/Bearish (cautiously pessimistic) to outright Neutral. Previous resistance now becomes support, the bulls will have the technical advantage until this pocket gives way. If the Bulls can defend that new support pocket, we could see prices extend towards contract highs, 770 ½. Sign up for a Free Trial at Blue Line Futures to have our entire fundamental and technical outlook, actionable bias, and proprietary levels for the markets you trade emailed each morning. Bias: Neutral Previous Session Bias: Neutral/Bearish Resistance: 749 ¾-751 ¾***, 770 ½** Support: 723 ½-725***, 694 ¼-700***, 672-676 ½*** |
You can sign up for a free trial here: https://www.bluelinefutures.com/free-trial
https://www.bluelinefutures.com
