Grain markets have traded on both sides of unchanged as traders come back from the holiday and gear up for a full week of trade.
Corn
Technicals (March)
With December options expiration behind us, attention now turns to the March contract. If you are still in December futures, you may consider rolling or flattening the position to avoid delivery risk in the back half of the week. As far as the technical landscape goes, the Bears are still in control as prices continue to mark lower highs and lower lows. Significant support to start the week comes in from 475-477. If the Bulls fail to defend that pocket, we could see the selling accelerate. On the resistance side, a close back above Friday’s high, 489 1/4 could spark a run back to the top end of the recent range between 495-500.
Bias: Bearish/Neutral
Resistance: 495-500****
Pivot: 485-489 1/4
Support: 475-477****, 460-464 1/2**
Seasonal Tendencies
Below is a look at historical seasonal averages for March corn futures (updated each Monday) VS today’s prices (black line).
*Past performance is not necessarily indicative of futures results.
Soybeans
Technicals (January)
January soybean futures got hit hard in the final two sessions of last week’s holiday trade. That weakness spilled into the overnight night trade, but buyers have been seen stepping in, taking prices back into positive territory. Our 3-star support pocket from 1323-1327 really needs to hold for the Bulls to stay in the game. A break and close below this pocket could open the door for a drop back near $13.00. On the resistance side, 1346-1350 is the first hurdle for the Bulls to overcome.
Bias: Neutral/Bullish
Resistance: 1360-1362**, 1375-1380***
Pivot: 1346-1350
Support: 1323-1327***
Seasonal Tendencies
Below is a look at historical seasonal averages for January soybean futures VS this year’s price (black line), updated each Monday.
*Past performance is not necessarily indicative of futures results.
Wheat
Technicals (March)
With December options expiration behind us, attention now turns to the March contract. If you are still in December futures, you may consider rolling or flattening the position to avoid delivery risk in the back half of the week. The Bears remain in control of the chart, for those looking for a countertrend trade opportunity, options may be a place to look for limited risk exposure. Feel free to contact our trade desk to discuss suitable startegies for you.
Bias: Neutral/Bullish
Resistance: 604-6081/2***
Pivot: 591 1/2
Support: 567-571 3/4***, 540-547 1/2***
Seasonal Tendencies
Below is a look at historical seasonal averages for March Chicago wheat futures VS this year’s price (black line), updated each Monday.
*Past performance is not necessarily indicative of futures results.
