A Quiet Start to a BIG Week

Research Posts Grain Express

/ by nawadblueline | Leave a comment

A quiet start to the week as grain traders gear up for end of month, end of quarter, and a USDA report.

Corn

News

  • Quarterly Stocks Report out on Friday.
  • Managed funds have maintained a sizable net-short position for quite some time, and added to that net-short for the 5th week in a row, bringing managed money’s position to 149,455 contract net-short. Broken down, that is 319,079 short positions and 169,624 long positions.

Technicals (December)

As we’ve been saying for the better part of the last month +, this is a trading environment full of shorter-term opportunities for market participants on both sides of the market.  Technical levels remain intact as the market hovers near our pivot pocket.  Perhaps the end of month, end of quarter, and a USDA report this week could spark a little more movement in prices. 

Bias: Neutral

Resistance: 489-491***, 502-506 1/2***

Pivot:  472-476 

Support: 460-464 1/2**

Seasonal Tendencies

Below is the updated look at historical seasonality’s VS today’s prices (black line).

Soybeans

News

  • Quarterly Stocks Report out on Friday.
  • Managed funds added to their small net-long position, bringing it to 38,414 contracts. Broken down, that is 88,139 long positions and 49,725 short positions.

Technicals (November)

Soybean futures are relatively quiet in the early morning trade which does little to change our bias, which has been in Bearish territory since breaking below trendline support near 1360 on September 12th.  The market sliced through several support pockets with ease which keeps the 1280-1285 support pocket as the next objective.  As mentioned in multiple interviews and in our daily reports, we would look at this pocket as a spot to consider buying into on the first test, whether that be short covering or establishing a new position. 

Bias: Neutral/Bearish

Resistance:  1330-1332 1/2****, 1350-1355***

Pivot: 1300-1304

Support: 1280-1285****, 1247-1257***

Seasonal Tendencies

Below is an updated look at seasonal averages for November soybeans.  Seasonal tendencies have shown weakness through the back half of September for the 5, 10, 15, 20, and 30 year averages, illustrated in the chart below. 

Wheat

News

  • Quarterly Stocks Report out on Friday.
  • Managed funds now hold a net-short position of 103,932 contracts. Broken down, that is 63,148 long positions compared to 167,100 short positions.

Technicals (December)

Wheat futures are holding ground this morning, that’s little to get excited about as these mini rallies have been very short-lived for the last several months.  We remain upbeat but continue to lean on options as a way to play for this countertrend trade.  Contact our trade desk if you’d like to discuss strategies that would be suitable for you.  

Bias: Neutral/Bullish

Resistance: 595-599 1/2***, 612-616****

Pivot: 585-587

Support: 570**

Seasonal Tendencies

Below is an updated look at seasonal averages for December Chicago wheat.  We are inching closer to a seasonal low (based on historical tendencies).  Will that play out again this year? TBD.

Sign up for a 14-day, no-obligation free trial of our proprietary research with actionable ideas! Free Trial Start Trading with Blue Line Futures Subscribe to our YouTube Channel
Email info@Bluelinefutures.com or call 312-278-0500 with any questions -- our trade desk is here to help with anything on the board!

Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500



Blue Line Futures

141 W. Jackson Blvd., Suite 2620 Chicago, IL 60604

info@bluelinefutures.com
(312) 278-0500
(F) (888) 370-2221

Quick Links
Markets
About

© 2022 by Blue Line Futures, LLC. All rights reserved.
Futures trading involves substantial risk of loss and may not be suitable for all investors.

Privacy Policy Illustration by Freepik Storyset

Get in touch with us today.
Press the contact us button to reach out to us or take a look at our social media pages.

Contact Us


Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

Performance Disclaimer

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

To top