A mixed morning with corn near unchanged, soybeans lower, and wheat gaining ground.
Corn
Technicals (December)
December corn futures are about as mute as it gets, in the early morning trade. As mentioned in yesterday’s report: 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 were sharply higher yesterday morning but reversed to retest what was previous trendline resistance. The market is hovering near that area again in the early morning trade, a break and close below here could open the door for a drop back into our support pocket from 1346-1350. Weather forecasts for South America will continue to be monitored closely, expect those to keep the volatility on the rise. Speaking with a hedge fund manager in Brazil, it’s a coinflip at this point but there seems to be more concern of downside pressure looking further down the timeline.
Bias: Neutral
Resistance: 1375-1380*** 1398-1400****
Pivot: 1360-1362
Support: 1346-1350****, 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 were on the very fringe of contract lows but were able to defend them over the previous two sessions which has led to some additional relief in the early morning trade. Trade volume has shifted to March, so if you’re still in December futures you may consider rolling or flattening before the end of the week.
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.
