Corn and wheat had a VERY constructive day yesterday which is aiding in an early morning rally. More room to run?
2-Minute Drill: A New Month, a New Market?
It was a big day for the markets as traders positioned for the first day of the month ahead of the Federal Reserve meeting which could add a tailwind to some markets.
Corn
Technicals (July)
July corn futures posted their lows of the day in yesterday’s session in the first 15 minutes of the regular trading session, making new lows for the move but ultimately rejecting them and grinding higher through the remainder of the session to post highs of the day in the final 15 minutes. That puts futures prices right back near our 4-star resistance pocket from 456 1/2-460. If the Bulls can chew through and close above this pocket, we believe it could trigger wave of short covering that could take us back above 470 in relatively short order. A break and close back below our pivot pocket from 448-451 would neutralize our near-term optimism.
Bias: Bullish
Resistance: 456 1/2-460*, 471-471 1/2
Pivot: 448-451
Support: 441 3/4-444 1/2, 433 1/4-436, 422 1/4-424 1/4**
Wheat
Technicals (July)
July Chicago wheat tested and held 4-star support yet again in yesterday’s trade, a pocket that we’ve touched on countless times this week in our morning reports/videos/interviews. Prices are now working higher and trading north of our pivot pocket from 600-605. A close above this pocket warrants a move back in to the 620’s. We will continue to keep a close eye on the outside markets and other grains. If the US Dollar starts to soften, this could be an added tailwind for grains which could help these markets work back higher together, almost feeding on itself.
Bias: Bullish
Resistance: 621 1/4-626 3/4, 635 1/4-639, 655-666
Pivot: 600-605
Support: 590-595, 565-570, 550-552 1/4**
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