Blue Line – Grain Express July 30th, 2021
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| Corn (December) Fundamentals: The market has been catching its breath most of the week, but weekend weather and changes in forecasts (one way or the other) could bring the volatility back next week. It is the last trading day of the month, which could also play a role in price action. Technicals: The sideways chop continues as we look to round out the trading week. This choppy trade has done little to change the technical landscape. The tightening ranges is like a tightly coiled spring, this will likely lead to a bigger directional move in the next week or so, which way will likely be dependent on weather. 547 552 ¼ is our pivot pocket. If the Bulls can achieve a conviction close or consecutive closes above here, we could see an extension towards the 570 area. A failure would take us back to the support in the mid 530’s. There’s plenty of short-term trading opportunity out there for trades on both sides of the markets. 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: 569 ¼-573****, 588 ½-591 ¼*** Pivot: 547-552 ¼ Support: 533-536***, 507-514****, 500 ¼** Soybeans (November) Fundamentals: Yesterday morning Private exporters reported to the U.S. Department of Agriculture export sales of 132,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year. The market has been catching its breath most of the week, but weekend weather and changes in forecasts (one way or the other) could bring the volatility back next week. It is the last trading day of the month, which could also play a role in price action. Technicals: More of the same, chop, chop, chop. That has been the theme so far this week, keeping many of technical support and resistance levels intact. Our pivot pocket has been 1365-1370, like yesterday, this is a magnet in the early morning trade. A conviction close above here bodes well for the Bull camp and could spark technical buying up towards 1398-1400. A failure, that could take us back to the 100-day moving average, 1329 ¼. There continues to be plenty of opportunity out there for trades on both sides of the markets. If the Bulls cannot make another strong push towards $14.00 and above soon, we may start moving our bias into Bearish territory. 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: 1398-1401***, 1414 ¾-1423** Pivot: 1365-1370 Support: 1325 ¾-1333***, 1300 ½-1306 ¾*** Chicago Wheat (September) Technicals: September wheat futures moved out above technical resistance in yesterday’s session, thanks to a strength in the broader grain complex and a weakening US Dollar. If the Bulls can defend 694 ¼-700, we could see another push towards the July 20th highs and possibly above. 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: 723 ½-725** Pivot: 694 ¼-700 Support: 672-676 ½***, 648 ¼-651 ¼**** Live Cattle (October) October live cattle gave up some ground in yesterday’s session as we approach a bearish seasonal. October live cattle have been lower for 13 out of the last 15 years from August 11th to August 26th. Coupled with prices at the top end of the technical range, we like leaning on the short side for a short-term trade. In our opinion, a pullback from these levels would set the December contract up for a good longer term buying opportunity. Resistance: 128.90-129.25***, 129.875-130.475**** Support: 127.00-127.075***, 125.15-125.625**, 124.05-124.325**** 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. Feeder Cattle (August) With grain markets moving higher yesterday, we saw a headwind in feeder cattle. Grains are weak in the early morning trade which may halt the selling pressure on the open. With that said, we are still keeping an eye on the gap from July 22nd that we are watching closely, that comes in from 156.975-157.325. We would consider looking long into this pocket. Resistance: 160.925-161.10**, 162.40-163.15*** Support: 156.975-157.325***, 153.70-154.25**, 151.225-151.90*** Lean Hogs (October) Lean hogs tried to stage a recovery after opening sharply lower yesterday, but that recovery turned out to be more of a dead cat bounce than anything. We continue to lean on the bearish side as we are in a bearish seasonal trade and approaching the month of August which is historically a weak month for hogs. Resistance: 90.875***, 92.375** Support: 87.35-57.675***, 83.125-83.65**** 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. |
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