Corn and soybeans gain ground ahead of this morning’s WASDE report while the wheat rally stalls out. These are the levels to watch for in today’s trade.
Corn
Technicals (March)
March corn futures were able to hold together pretty well yesterday which has led to some additional strength in the overnight and early morning trade. Resistance remains intact from 493-496 1/2 as traders gear up for this morning’s WASDE report. Typically, this report isn’t packed with any big surprises.
Bias: Neutral
Resistance: 493-496 1/2****, 502 1/2-505***
Pivot: 481-484
Support: 470-473****, 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 soybeans have been able to defend support over the last three sessions which we outlined as 1294-1300. In the last few reports, we noted: “From a risk/reward standpoint, we see it as a spot for Bears to reduce exposure and Bulls to put exposure on. You know where your wrong, and that’s a break and close below support. The first short term upside target comes in from 1323-1327.”. With the market trading into that upside target we would look at it as an opportunity to reduce long exposure (if you bought support) ahead of today’s USDA report. We are moving our short-term bias from Bullish to outright Neutral.
Bias: Neutral
Resistance: 1346-1350***, 1360-1362**
Pivot: 1323-1327
Support: 1294 1/2-1300****
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)
March Chicago wheat futures bulled back early yesterday but were able to defend our pivot pocket and firm into the close, marking a new high close for the move. Overall, that’s pretty constructive price action. First resistance comes in from 645-650, if the Bulls can chew through and close above this pocket it could extend the rally towards 668-672. On the flip side, 622-631 remains intact as our support/pivot pocket. A failure there could spark profit taking from recent buyers.
Bias: Neutral/Bullish
Resistance: 645-650***, 668-672****, 700**
Pivot: 622-631
Support: 608 1/2-611***, 591 1/2-595***
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.
Oliver Sloup, VP & Co-Founder, Blue Line Futures