Market Overview – Grain Express
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| Corn (December) Fundamentals: This morning’s weekly export sales report showed net sales of 1,039,900 MT for 2021/2022 were down 18 percent from the previous week, but up 85 percent from the prior 4-week average. Technicals: In yesterday’s report we talked about moving our bias from outright Neutral, into bullish territory. This was based on several technical indicators, market sentiment, and seasonality. Significant support from 497 ½-507 was tested and held, for the fourth time since the middle of May. As mentioned in yesterday’s interview with RFD-TV, this is a wider support pocket than we would typically use, but it is SIGNIFICANT. Buying into a support pocket like that gives you a good risk/reward trade. A break and close below that pocket and it’s time to take your medicine and move on. The overall sentiment has been bearish for the last few weeks and Tuesday’s USDA report was the cherry on top. That coupled with harvest being over the half-way point, what more bearish news can be thrown at the market in the very near term? Not a lot, shifting the risk to the upside. Does that mean a long-term bottom is in? No. But conditions were ripe for a relief rally, which has brought prices back to our pivot pocket, 519-521. If the Bulls can chew through this pocket, we could see an extension towards 532-533. All in all, this will continue to be a trader’s market, plenty of short-term opportunity for market participants on both sides of the ball. 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: 532-533**, 544 -550****, 558** Pivot: 519-521 Support: 512 ¾-514 ¼***, 497 ½-507**** Soybeans (November) Breaking: 396,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year 326,750 metric tons of soybeans received during the reporting period for delivery to unknown destinations during the 2021/2022 marketing year 132,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year Fundamentals: This morning’s weekly export sales report showed net sales of 1,147,800 MT for 2021/2022 were up 10 percent from the previous week and 9 percent from the prior 4-week average. Yesterday morning, the USDA announced a flash-sale of 132,000 metric tons of soybeans for delivery to “Unknown Destinations” for the 2021/2022 marketing year. Technicals: As with corn, we moved our soybean bias into Bullish territory in yesterday’s commentary, for similar reasons to corn. Significant technical support held, we’ve had that defined as 1180-1185 ½, this pocket goes back to March, when the market started it’s rocket propelled rally. We see technical resistance from 1227-1231 ¾. We would not be surprised to see the market stall out against this pocket, on the first test. 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: 1227-1231 ¾****, 1259 ¾-1262 ¾** Pivot: 1194 ¾-1200 Support: 1180-1185 ½**** Wheat (December) Fundamentals: This morning’s weekly export sales report showed net sales of 567,600 metric tons (MT) for 2021/2022 were up 70 percent from the previous week and 42 percent from the prior 4-week average. Technicals: The market was able to recover some of Wednesday’s losses in yesterday’s session and have finished recovering those losses in the early morning session. The market has worked its way back into our pivot pocket, which we have defined as 730-733 ¼. A close above this pocket would neutralize our slightly y bearish bias. 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: 758 ½-760***, 778 ¼**, 786 ½** Pivot: 730-733 ¼ Support: 712 ¾-718 ½***, 698¾-703**** If you have any questions about markets, trading, or opening an account please let us know! |
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