Blue Line – Grain Express July 6th, 2021

Corn (December) Fundamentals: Favorable forecasts for the Northern Plains and parts of the Midwest has many traders looking for a gap lower to start the shortened trading week, with some calling for 15-25 cents lower. Weather will continue to be the key factor in price action and money-flow. Crop progress will be out this afternoon. The next USDA report is less than a week away (7.12.21), we will have estimates out before the end of the week. Technicals: The market surged higher following last week’s USDA report, but the inability to find follow through on Thursday, set the tone for additional weakness heading into the long weekend. First support this week comes in from 559-566. A break and close below this pocket could open the door for a retest of trendline support and the 100-day moving average, both coming in in the mid 520’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: 588 ½-591 ¼***, 610**, 620-628 ¼** Pivot: 573 ¼-575 Support: 559-566****, 523 ¾-528 ¼****, 514 ¼** Soybeans (November) Fundamentals: Soybeans look set to gap lower, some analysts saying as much as 25 cents (give or take). This on the back of improving forecasts for parts of the Northern Plains and Midwest. Though we will likely see pressure to start this week’s trade, last week’s USDA report could help keep things from completely washing out. Weather will continue to be the key factor in price action and money-flow. Crop progress will be out this afternoon. The next USDA report is less than a week away (7.12.21), we will have estimates out before the end of the week. Technicals: November soybeans failed to find meaningful follow through after last week’s Bullish USDA report, which may be a bit of a near term caution flag for the Bull camp. First support comes in near 1370, a break and close below there could take us back to the breakout point from last Wednesday, closer to 1325-1330. Resistance to start the week comes in from 1414 ¾-1423. 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: 1414 ¾-1423**, 1461-1466***, 1480** Support: 1365-1376***, 1325-1330** Chicago Wheat (September) Techncials: Following last week’s USDA report, we noted that wheat was riding the coattails of corn and beans, if those failed to find follow-through, wheat would likely drop at a faster pace. Wheat futures have erased nearly all last Wednesday’s gains, and could be threatening another leg lower if support from 637-640 cannot hold. 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: 672-676 ½**, 700-708 ½***, 725** Pivot: 658-663 Support: 637-640****, 594-600** |
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