Corn, soybeans, and wheat are all higher in the early morning trade. Is the bottom in for corn and wheat or is this just a relief rally from oversold levels? How high can soybeans go?
Corn
Technicals (December)
December corn futures were able to put together another day of gains which has spilled over into overnight and early morning strength. We haven’t seen three consecutive days of gains since the middle of June. As mentioned, several times this week, we remain optimistic so long as we can see the market continue to close above 480-482. The upside objective would be closer to the technically and psychologically significant $5.00 level. Volatility is at its lowest levels since May, making options more attractive as a way to gain limited risk long exposure in what would be a counter trend trade.News
We will be on the eastern leg of the Pro Farmer Crop Tour next week. Be sure to follow us on YouTube, Twitter, and Facebook for the most up to date information.
Bias: Bullish/Neutral
Previous Session Bias: Neutral/Bullish
Resistance: 502-506 1/2***, 518-525 3/4****
Pivot: 480-482
Support: 472-476**
 |
5-Year Average Tendencies
Over the last 5-years, this is a time of year where we’ve seen the corn market attempt to carve out a near term low. Whether or not that plays out this year is still TBD.
 |
Soybeans
Technicals (November)
The market had a nice rally yesterday but finished nearly 11 cents off the high, rejecting last week’s highs and the 200-day moving average for the 4th time in 5 sessions. The market has shrugged off yesterday’s failure, taking out yesterday’s high in the overnight trade which has opened the door for a run at our next resistance pocket, 1350-1355. If the Bulls can chew through this pocket, we could see continued buying take prices back into the July 31st gap, 1375 1/2-1379. We talked about both these levels in recent reports as well yesterday’s “2-Minute Drill”: Watch Now!
News
Above normal temperatures coupled with below normal precipitation levels could keep the market firm. The Pro Farmer Crop Tour will hit the road next week. Although it will be too early to get an estimated soybean yield it will give us a better look at the prospects. We will be on the eastern leg of that tour, providing multiple updates a day on our YouTube channel.
Bias: Bullish/Neutral
Previous Session Bias: Bullish/Neutral
Resistance: 1324-1334***, 1350-1355**
Pivot: 1291-1300
Support: 1282**, 1256-1260***
 |
Wheat
Technicals (September)
We triple checked the quotes this morning to make sure that this is accurate, but wheat is indeed positive in the early morning trade. The market may be trying to attempt a double bottom against the May 31st lows which we talked about all week, that was at 587 3/4. Seasonally this is a bearish time of year, but a decent risk/reward setup may be there for a counter trend trade. If the Bulls can get back out above our pivot pocket from 603-607, we could see an extension back towards 622-632. The US Dollar has been on an unbelievable rally, if that strength starts to stall, perhaps that could act as a tailwind for wheat futures.
News
India is in talks with Russia to import wheat at a discount to surging global prices in a rare move to boost supplies and curb food inflation ahead of state and national elections next year, according to four sources.
Bias: Neutral/Bullish
Previous Session Bias: Neutral/Bullish
Resistance: 622-632***, 669-673***
Pivot: 603-607
Support: 587 3/4-591 1/2****
 |
Seasonal Tendencies
Though the wheat market may be due for a relief rally, longer term averages for this time of year indicate potential for seasonal weakness into the first half of September.
 |