Grain futures have been firm in the overnight and early morning trade, but we saw that overnight strength fizzle into regular trading hours last week. Will the early morning rally be able to hold?
Watch us on RFD-TV at 9:45 CT
Corn
Technicals (July)
July corn futures had a rough last week, pulling back as much as 24 1/2 cents after prices failed against our 4-star resistance pocket. Support on the way down was sliced through like a warm knife on butter which puts prices at an interesting place to start the week, sandwiched between the 50 and 100 day moving averages. Soybeans and wheat firming back up in the overnight and early morning trade may be helping to add a tailwind to prices. The Bulls want to see a close back above 460 1/4 to help neutralize some of the technical damage that was done last week.
Friday’s Commitment of Traders report showed Funds were net buyers of roughly 31k futures and options contracts with a slight majority of that being new longs (vs short covering). Their net short position stands at 71,171 contracts.
Bias: Bullish/Neutral
Resistance: 460 1/4, 471-474 3/4, 483 1/2-486**
Pivot: 454 1/4-456 1/2
Support: 448-451**
Soybeans
Technicals (July)
July soybean futures had an impressive session on Friday which has led to some early morning strength and prices retesting resistance from 1232 1/4-1236 3/4. If the Bulls can chew through this pocket, we could see a run back at 1252-1259 and possibly higher, with the 200-day moving average at 1283 3/4 being the next target. We’ve been hesitant to get excited about beans due to poor demand and the potential trade war headlines into the election, but ignoring the noise and looking at the chart, they are looking pretty good.
Friday’s Commitment of Traders report showed funds were relatively flat last week, which aligns with the chart. Funds are net short roughly 43k Futures and options contracts.
Bias: Bullish/Neutral
Resistance: 1232 1/4-1236 3/4, 1252-1259
Pivot: 1220-1225
Support: 1199 1/2-1204, 1182 1/4-1186 1/4
Wheat
Technicals (July)
July wheat futures got hit hard last week but are showing signs of life in the early morning trade as prices recover and trade back north of our pivot pocket from 655-666. The overnight/early morning strength last week was faded on the opens, will it hold this go around? TBD. If the Bulls can achieve a close back above the upper end of our pivot pocket we believe it could help propel prices back towards resistance and potentially beyond. That next line in the sand comes in from 695-702.
Bias: Neutral/Bullish
Resistance: 695-702*, 727
Pivot: 655-666
Support: 635 1/4-639, 621 1/4-626 3/4*
Enjoying what you’re reading?
Subscribe to our daily Grain Express for daily insights into Soybeans, Wheat, and Corn technicals, including our proprietary trading levels, and actionable market bias.
Sign Up for Free Futures Market Research – Blue Line Futures