Risk On Rally in Grains

Research Posts Grain Express

/ by nawadblueline | Leave a comment

Grain markets rally as the broad-based risk on rally continues following this week’s Federal Reserve Meeting.

Corn

Technicals (December)

December corn futures broke below support from 472-476 yesterday which has bled into additional weakness in the overnight and early morning trade. The next soft support pocket comes in from 460-464 1/2.  What was especially demoralizing for the Bulls yesterday was the fact that nearly every other commodity on the board was green in what was a very broad-based risk on day for markets.  Previous support will now act as resistance.

Bias: Neutral

Resistance:  484-486***, 499-502 1/2****

Pivot: 472-476 

Support: 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 close above the 200-day moving average yesterday which has extended the rally to the 50-day moving average.  Next up, the 100-day moving average at which now comes in at 1342.  If the Bulls can achieve consecutive closes above these resistance points, we could see that lead to additional technical momentum with the next upside objective coming in near 1360. A close back below the 200-day moving average would start to neutralize some of the recent Bullish developments. 

Bias: Bullish/Neutral

Resistance: 1332-1342****, 1360**

Pivot: 1322 3/4

Support: 1299 3/4-1303****, 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 futures were able to benefit from a broad-based risk-on day in the markets, squeaking out a small gain of their own.  That rally struggled against our pivot pocket which remains intact for today’s trade, coming in from 568 1/2-570.  If the Bulls can get back out above here that could spark additional upward movement towards the 50-day moving average which comes in at 582 and has not been closed above since July. 

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.

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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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