Soybeans Retreat Ahead of Tomorrow’s USDA Report

Research Posts Grain Express

/ by nawadblueline | Leave a comment

Soybean futures are weaker in the early morning trade following yesterday’s failure against technical resistance as traders look to tie up loose ends ahead of tomorrow’s USDA report.

Corn

News

  • Friday’s Quarterly Stocks Estimate
    • 1.429 billion bushels
  • With Friday being end of month and end of quarter, that may play a role in price action through the remainder of the week.

Technicals (December)

Tired of reading about a rangebound corn market?  It’s getting a little old writing about it too.  Technical levels remain intact.  There continues to be great intraday opportunities on both sides of the market, feel free to reach out to our trade desk for trade ideas. 

Bias: Neutral/Bullish

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

  • Friday’s Quarterly Stocks Estimate
    • 242 million bushels
  • With Friday being end of month and end of quarter, that may play a role in price action through the remainder of the week.

Technicals (November)

Soybean futures traded right to last Thursday’s breakdown point where the market fizzled out, moving our bias back to neutral.  The failure to chew through resistance has taken prices back below our pivot pocket 1300-1304.  A close back below this pocket keeps the door open for a retest of 1280-1285, below that is 1247-1257. 

Bias: Neutral

Resistance:  1322-1328****, 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

  • Friday’s Quarterly Stocks Estimate
    • 1.772 billion bushels
  • With Friday being end of month and end of quarter, that may play a role in price action through the remainder of the week.

Technicals (December)

Wheat futures failed to get out above trendline resistance yesterday (see chart below) which may have spurred some selling pressure that took prices back below our pivot pocket from 585-587.  Support comes in at 570, which if tested would likely trigger some stops below there. 

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.

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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

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