Grain markets are weaker in the early morning trade with corn futures on the brink of a technical breakdown. Is the market headed for new lows?
Corn
Technicals (December)
December corn futures broke and closed below our pivot pocket yesterday which has opened the door for follow-through pressure in the overnight and early morning trade. The next downside objective we are looking at comes in from 472-476. A close back above our pivot pocket from 489-491 would neutralize some of the damage. Also, interesting to note that the last three weeks have looked fairly similar with a strong rally on Thursday followed by three days of selling and stabilization on the 4th day.
Bias: Bearish/Neutral
Resistance: 499-502 1/2****, 511 1/4**
Pivot: 489-491
Support:Â 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
Technicals (November)
November soybeans pulled back and held 4-star support yesterday, we had defined that as 1280-1285 and noted in yesterday’s report that “If you had sold against 4-star resistance last week, this would be the spot to consider reducing. If you’re bullish, you may consider taking a position.”. With November options expiration on Friday, we wouldn’t be surprised to see a gravitational pull towards $13.00. With that in mind, we think there’s a reason to be bullish below and bearish above. A break and close below 1280 would negate that thesis.
Bias: Neutral
Resistance: 1317-1324****, 1333 3/4**
Pivot: 1299 3/4-1303
Support: 1280-1285****, 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
Technicals (December)
December Chicago wheat futures were lower yesterday but managed to defend 568- 1/2-570. This needs to continue to be defended by the Bulls to mark higher lows the 50-day moving average is acting as resistance this week, that comes in near 592.
Bias: Neutral/Bullish
Resistance: 601 3/4-604 1/2***, 612-616****
Pivot: 588-592
Support: 568 1/2-570***, 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.
