Blue Line – Grain Express July 2nd, 2021

Attention: Markets are closed on Monday Corn (December) Fundamentals: With the USDA report behind us, attention has shifted to weather ahead of a long holiday weekend. We would expect a choppy trade in the early hours but would not be surprised to see a boring afternoon trade as some participants hit the road early for the long weekend. The USD has been back at 3-month highs which may add another headwind to the market. Technicals: Despite finishing the day in positive territory, yesterday’s price action is not what the Bulls wanted to see. All of yesterday’s early morning gains came before the floor open. When we got more participation on the 8:30 open, the market was roughly 20 cents lower for the day. The gap from June 11th was filled, that came in at 610, which was about where we topped out yesterday. That rejection brought us back to technical support, which we had listed as 588 ½-591 ¼ in yesterday’s report. A break and close below this pocket could spur additional pressure and take us back to the breakout point in the 570’s. 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/Bullish Resistance: 610**, 620-628 ¼**, 638** Support: 588 ½-591 ¼***, 573 ¼-575** Soybeans (November) Fundamentals: With the USDA report behind us, attention has shifted to weather ahead of a long holiday weekend. We would expect a choppy trade in the early hours but would not be surprised to see a boring afternoon trade as some participants hit the road early for the long weekend. The USD has been back at 3-month highs which may add another headwind to the market. Technicals: Soybean futures saw some follow through from Wednesday, but when we got more participation on the floor open, it fizzled a bit. It was not destructive to the chart, but certainly not the follow through that the Bulls wanted to see. Resistance was tested and held, that remains intact today, we had defined that as 1425-1430 ½. A move above here would open the door for a run at the June 14th gap, 1439. Support remains intact from 1365-1376. This is a wider pocket than we would like, but wider intraday ranges have created some sloppy charts. 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/Bullish Previous Session Bias: Neutral/Bullish Resistance: 1425-1430 ½***, 1461-1466***, 1480** Support: 1365-1376***, 1329-1341** Chicago Wheat (September) Technicals: In yesterday’s report we wrote about wheat riding the coattails of corn and beans, and should they turn, wheat will see the most pressure (relative to corn and beans). This is what we saw during the regular trading hours yesterday. The market broke through first support in the mid 670’s which opened the door for a run at our next support pocket, 658-663. If the Bulls fail to defend that pocket, it could get ugly. Resistance remains intact from 700-708 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: Bearish/Neutral Previous Session Bias: Bearish/Neutral Resistance: 700-708 ½***, 725**Pivot: 672-676 ½ Support: 658-663***, 637-640**** |
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