Corn
Technicals (December)
December corn futures are gaining some ground in the early morning trade, making their way back into our pivot pocket from 472-476. December options expiration is Friday at the close. If you look at open interest on these options as a potential gauge of the gravitational pull to where max pain would be, it would be at 480. With that in mind, below 470 we see value, the closer we get to 480 the less value we see. If we did get a rally into options expiration, we think it could setup for an opportunity for hedgers to protect price ahead of first notice day next week. If you are still in December futures by the end of the week, you may consider flattening or rolling the position.
Bias: Neutral
Resistance: 484-486***, 499-502 1/2****
Pivot: 472-476
Support: 460-464 1/2**, 442-450***
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 had a strong recovery in yesterday’s trade which has led to follow-through momentum in the early morning hours and taken prices back to the scene of the crime (the breakdown point) from last Thursday. If you had bought support to start the week, you may consider reducing exposure at these levels ahead of what could be a choppy rest of the week. A failure to get out above 1380 on a closing basis could spark profit takin back to the 1350 area. If the Bulls are able to keep the ball rolling and we close above 1380, the next stop would be new highs for the move, 1398-1400. We are moving our bias from Bullish/Neutral to outright Neutral.
Bias: Neutral
Resistance: 1375-1380*** 1398-1400****
Pivot: 1346-1350
Support: 1323-1327***
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 are right back into the area of the contract lows that were posted at the end of September. A break and close below 540-547 1/2 puts the chart back into uncharted territory, making it very difficult to find the next meaningful support pocket. December options expire this Friday, if you are still in December futures you may consider flattening or rolling the position before the weekend.
Bias: Neutral/Bullish
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.
