Grain Markets Sag on USDA Data

Transcript:

Good afternoon. This is all Oliver Sloup Blue Line futures coming to you from the Chicago Board of Trade with another episode of the two minute drill Today is Thursday, April 11. And that’s right, it was a USDA day. But as we mentioned, in yesterday’s two minute drill, this report was expected to be a snooze fest. And it basically lived up to those expectations wasn’t really a whole lot to write home about there on either side of things. So it’s back to talking about technicals, weather, outside markets, etc. Before we get into the charts, I want to remind you, if you have not signed up for a free two week trial of our daily commodity commentary, head over to Blue Line futures.com. Go to the free trial tab. From there, you can select what markets you’d like to read about each and every morning, I cover the grain and livestock each day, my colleagues cover some of the more recently exciting markets such as crude oil, gold, silver, NASDAQ, et cetera, Bitcoin even so get in if you haven’t subscribed, the free trial of our research, head over there, blue line futures.com And get yourself set up. And if you have any questions over those markets, or what you’re reading, we’ve got a professional trade desk here to help. The number is right below scrolling across the screen, so don’t be afraid to pick up that phone, give us a call. We are here ready, willing and able to help. So without further ado, I guess we can go ahead and get into the charts. This is the blue line edge trading platform that we’re looking at today. This is a free platform to clients to trade from futures, and options, capabilities. It’s a really great tool. Now that I got that little plug out of the way though, we got July corn pulled up here and talking about today’s report, just a lack of new news to really excite buying into the market and not scare or spook any shorts out of their position. So I think we saw some of that reaction just lead to some additional weakness in today’s trade. And we’re basically right back at the levels that we were at trading into that quarterly stocks or prospective plantings report. And this is what I’m going to kind of define here in the near term as a must hold area down here near 440. For that July contract, soybeans broke below their support and yesterday’s trade. And we saw some follow through today. similar chart set up here. This is a muscled area breaking close below here could spark some additional technical selling and kind of spooked some of the recent dip buyers from this quarterly Sox report out of the market. And that could kind of feed on itself and live hand two additional pressure. Here in the corn market, I’d like to be optimistic. But there’s just really not a whole lot to write home about here in the very near term. Now looking at the new crop December contract, I think you could probably make the case that we chop around on both sides, here in the next couple of months, as planting and weather continues to be a growing and growing topic. And it’s either hot, too hot, too cold, too wet, to dry, etc. So potentially that adds a little bit of support to the market. But if things do pan out, I am concerned about lower price action further down the road. So now that we got corn out of the way we can touch base on soybeans, again, just kind of mentioned broke below support yesterday and that put the bulls or the bears in control and today’s trade and we saw some follow through weakness, especially on the heels of the release of that report. So we did come off of those lows, which I guess if if you’re bullish, that’s the silver lining but we’re still below the support this is going to be that that level that the bulls want to get back out above. If failure to do that keeps the bears in control and really wouldn’t be too terribly surprised see a low test or a retest of the low end of the range from back in February. So kind of echoing the sentiment that we had in yesterday’s two minute drill here on soybeans. Now I do trade a lot of other markets with clients as well some of the more exciting ones recently silver just knocking on the door of continued breakout. So yesterday CPI number had us trading in a wide range this afternoon, or climbing back knocking on the doors of new all time highs or contract highs. Rather new all time highs were knocking on the door for gold here. This is the June gold contract that we’re looking at. So a lot of exciting things going on outside of the agricultural space. If you’d like to learn how to get involved again, feel free to reach out to our trade desk. We are ready, willing and able to help you on that. You can hit that QR code or give us a call. As always remember trading futures and options involves substantial risk of loss and it’s not suitable for all investors.