Are Grain Markets Breaking Out?

Research Posts Grain Express

/ by nawadblueline | Leave a comment

Grain markets were able to see a strong rally in yesterday’s trade but are so fare relatively mute in the early morning session. These are the levels to keep a close eye on in the last trading day of the week.

Corn

News

  • Yesterday’s weekly export sales report showed net sales of 1,816,000 MT (71,492,742 bushels) for 2023/2024. Near the upper end of expectations and well above last week’s 841,783 MT.

Technicals (December)

Corn futures finally did it, they broke out above the 490 level which everyone and their dog were watching extremely closely.  The move above here likely triggered stops and spurred a wave of buying from short covering and momentum traders.  Previous resistance will now act as support, 489-491.  We believe the Bulls now have the technical advantage so long as they can defend that pocket.  A break and close below would neutralize that bias. 

Bias: Bullish/Neutral

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

Pivot:  472-476 

Support: 460-464 1/2**

Seasonal Tendencies

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

Soybeans

News

  • Yesterday’s weekly export sales report showed net sales of 808,500 MT (29,707,281 bushels) for 2023/2024. Near the upper end of expectations and above last week’s 672,213 MT.

Technicals (November)

November soybean futures are threating a breakout above our pivot pocket in the early morning trade.  If the Bulls can achieve that in today’s trade it could keep the door open for a run back at our resistance pocket from 1300-1308 1/2.  On the flipside, a continued failure to close above the pivot pocket could keep the market in check and rangebound down to support near 1250. 

Bias: Bullish/Neutral

Resistance:  1300-1308 1/2***, 1322-1328****

Pivot: 1280-1285 

Support: 1247-1257***

Seasonal Tendencies

Below is a look at seasonal averages VS this year’s price (black line) for November soybeans (updated each Monday). 

Wheat

News

  • Yesterday’s weekly export sales report showed net sales of 273,100 MT (10,034,704 bushels) for 2023/2024 were down 50 percent from the previous week and 34 percent from the prior 4-week average. Near the low end of expectations and below last week’s 544,539 MT.

Technicals (December)

Wheat futures had an impressive rally in yesterday’s trade, taking prices back to trendline resistance and the scene of the crime (the breakdown point) from the quarterly stocks report.  The close above 570 was the first step, the next step is seeing a close above 585-587.

Bias: Neutral/Bullish

Resistance: 585-587**, 595-599 1/2***, 612-616****

Pivot: 570 

Support: 540-541 1/2** 

Seasonal Tendencies

Below is a look at seasonal averages VS this year’s price (black line) for November soybeans (updated each Monday).

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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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