Grains Consolidate Ahead of USDA Report

Research Posts Grain Express

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Grain markets are mixed in the early morning trade as traders await new news from the USDA.

Corn

News

  • Today’s USDA report is scheduled to be released at 11am CT.  The average analyst estimate for the US corn yield is 173.5 bushels per acre, that would be down from 173.8 in last month’s report.  The average production estimate comes in at 15.121 billion bushels. 

Technicals (December)

December corn futures made new lows for the week in yesterday’s trade but were able to recover and finish the day in positive territory.  The market has been on both sides of unchanged in the overnight and early morning session as Traders await new news from today’s USDA report. 489-491 is the line in the sand to keep a close eye on as it could act as a near term inflection point.  

Bias: Neutral/Bullish

Resistance:  502-506 1/2***, 511 1/4**

Pivot: 489-491

Support: 472-476***, 460-464 1/2**

Seasonal Tendencies

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

*Past performance is not necessarily indicative of futures results. 

Soybeans

News

  • Today’s USDA report is scheduled to be released at 11am CT.  The average analyst estimate for the US soybean yield is 49.9 bushels per acre, that would be down from 50.1 in last month’s report.  The average production estimate comes in at 4.134 billion bushels. 
  • Private exporters reported the following sales activity yesterday morning:
    • 121,000 metric tons of soybeans for delivery to China during the 2023/2024 marketing year
    • 213,000 metric tons of soybeans received in the reporting period for delivery to unknown destinations during the 2023/2024 marketing year.

Technicals (November)

November soybeans continued to pull back yesterday but have still defended our support pocket from 1247-1257.  This is what we would define as a “MUST HOLD” pocket.  A break and close below could accelerate the selling pressure with little meaningful support until $12.00 and below. 

Bias: Neutral

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

Pivot: 1280-1285 

Support: 1247-1257***, 1195-1200**

Seasonal Tendencies

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

*Past performance is not necessarily indicative of futures results. 

Wheat

Technicals (December)

Wheat futures drifted lower yesterday, but it didn’t add to the technical damage that has already been done.  Traders with a Bullish bias will be keeping a close eye on trendline resistance in today’s trade, that comes in near 570.  

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 December wheat (updated each Monday). 

*Past performance is not necessarily indicative of futures results. 

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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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