A mixed morning for grain markets with corn lower, wheat higher, and soybeans near unchanged.
Corn
News
- Managed money funds continued to shrink their net-short position this week, by trimming nearly 30k contracts to hold a net-short of 112,691 contracts. Broken down, that is 286,547 short positions compared to 173,856 long positions.
Technicals (December)
December corn futures quietly squeaked out another week of gains, keeping our short-term bias towards the Bullish side. 502-506 1/2 continues to be the significant resistance pocket we are watching for. A break and close above that pocket could spark a bigger wave of short covering from the Funds. On the flip side, a failure to defend our pivot pocket from 489-491 would likely open the door for a retest of the low end of the range which comes in closer to the mid-470’s.
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 seasonal averages (updated each Monday) VS today’s prices (black line).
*Past performance is not necessarily indicative of futures results.
Soybeans
News
- Managed money funds remain aggressively neutral on soybeans, holding a net-long position of just 2,166 contracts – 66,420 longs versus 64,254 shorts.
Technicals (November)
November soybean futures saw some strength in the overnight trade but have struggled to trade out above our pivot pocket with much conviction. That pocket remains intact from 1280-1285, just above that is trendline resistance near 1293. If the Bulls can clear these hurdles, we could see prices make an attempt at retesting some of the major moving averages which come in from 1313-1323.
Bias: Neutral/Bullish
Resistance: 1300-1308 1/2***, 1322-1328****
Pivot: 1280-1285
Support: 1247-1257***, 1195-1200**
Seasonal Tendencies
Below is a look at historical 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
News
- Funds still hold a net-short of 104,335 contracts. Broken down, that is 66,207 long positions compared to 170,542 short positions.
Technicals (December)
Wheat futures are leading the way higher this morning as the market trades to its highest levels since September 27th. 585-587 was our resistance pocket to round out last week’s trade and will act as the first hurdle in today’s trade as well. If the Bulls can chew through this pocket, we could see that open the door for continued short covering towards the psychologically and technically significant $6.00 area.
Bias: Bullish/Neutral
Resistance: 585-587**, 595-601 3/4***, 612-616****
Pivot: 570
Support: 540-541 1/2**
Seasonal Tendencies
Below is a look at historical seasonal averages VS this year’s price (black line) for December wheat (updated each Monday).
*Past performance is not necessarily indicative of futures results.
