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Grain Markets Struggle Following Crop Progress

Grain Express

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Grain markets had a bullish reversal in yesterday’s trade but failed to find follow-through buying in the overnight and early morning trade. Will buyers show up at the 8:30 open again?


Grains have been under heavy pressure for the last two weeks, but has the selloff shifted the risk/reward setups back to the buy side?

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Corn

Technicals (December) December corn futures were sharply lower yesterday morning but managed to mark their lows of the session in the first 15 minutes of trade, grinding back to post the highs (of the day session) in the final minutes of trade.  This is very constructive price action, but the lack of follow-through in the overnight and early morning trade has raised cause for pause. The Bulls want to see a close above 453-455 to spark additional relief in the market. 

  • Bias: Neutral/Bullish
  • Resistance:  453-455****, 460 1/4-463 1/2***
  • Pivot: 444 1/4 
  • Support: 433-436****

Soybeans

Technicals (November) November soybeans made new lows in the early morning trade but finished in positive territory and on the highs of the session. As with corn, this type of reversal is generally pretty encouraging, and it was, but the lack of follow-through in the overnight and early morning trade is just a kick in the shins. Fund selling across the grain and oilseed complex through June is identical to what we saw in 2018, which was during the trade war. We’ve been talking about trade war potential for several months now likely adding a big headwind to the market ahead of the US election. That doesn’t mean we can’t every rally again, but it does likely keep a lid on a significant rally, barring any significant weather scare.

  • Bias: Neutral
  • Resistance: 1148-1154****
  • Pivot: 1138 1/2-1141
  • Support: 1111 1/2-1115****

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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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