Soybean and wheat futures are leading the way higher this morning as money flows back into grains.
Corn
Technicals (December)
Corn futures traded into and closed in our 3-star technical support pocket from 472-476. From a purely technical perspective, it’s a good risk/reward setup to the buyside. A break and close below that pocket and that opens the door for a drop to the September lows. The recent upside has been limited to the 50-day moving average which comes in near 484 1/2 this morning. Looking a little further out (past this week) we wouldn’t be surprised to see continued consolidation and sideways action into December options expiration which is just about 3-weeks away. Once we get past that, we could see the recent trading ranges get violated.
Bias: Neutral/Bullish
Resistance: 499-502 1/2****, 511 1/4**
Pivot: 484-486
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
Technicals (January)
January soybean futures were able to mark a higher low in yesterday’s trade which has helped propel prices higher this morning, trading out above the 200-day moving average and inching towards the 50 and 100 day moving averages. We’ve outlined this resistance pocket all week as 1324-1336. This is a wider pocket than we would typically like to use but there are so many important price points within it we decided to make it one big pocket instead of several smaller pockets really close to each other. If the Bulls can chew through the upper end of resistance, we could see that fuel another leg higher on technicals alone. The next upside target comes in near 1360. On the flipside, a failure against resistance likely keeps the market rangebound with a retest of the low end as the downside target, 1299 3/4-1303.
Bias: Bullish/Neutral
Resistance: 1324-1336****, 1360**
Pivot: 1299 3/4-1303
Support: 1270****, 1247-1257**
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 was able to stabilize in yesterday’s trade but that has done little to offer additional support in the overnight and early morning trade. The Bulls want/need to see a close back above our pivot pocket from 568 1/2-570 to spark a bigger relief rally with the next objective being the 50-day moving average at 583 1/4.
Bias: Neutral
Resistance: 582-585***, 601 3/4-604 1/2***
Pivot: 568 1/2–570
Support: 540-547 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.
