Grain markets mark an impressive reversal in Monday’s trade but fail to find follow through momentum in the overnight and early morning trade.
Oliver Sloup was on RFD-TV Monday morning, sharing his thoughts on the recent price action in the grain and livestock markets!
Corn
Technicals (December)
Corn futures had an impressive reversal yesterday, posting lows of the session on the open and highs at the close. Unfortunately for the corn Bulls, a better than expected crop progress report has stonewalled any follow-through in the overnight and early morning trade. Support from 399-403 remains intact and is what we would refer to as MUST HOLD territory on a closing basis. A failure there and we could see selling accelerate. On the resistance side, our pivot pocket from 413-416 1/2 is the hurdle the Bulls want to get back out above, that was tested to a T in yesterday’s trade.
Export Inspections: 1,058,922 metric tons. Above last week’s 991,257 MT. Current marketing year to date stands at 46,662,924 MT, VS the previous marketing year to date 34,824,070 MT.
Crop Progress: Good/excellent conditions of the U.S. corn crop were reported at 68%, that was a 1% improvement from the previous week. Many analysts were looking for a 1% decline.
- Bias: Neutral
- Resistance: 423-426, 430-434**
- Pivot: 413-416 1/2
- Support: 399-403**
Below is a daily chart of December corn futures.
Soybeans
Technicals (November)
November soybean futures were under heavy pressure yesterday morning but were able to attract buying interest that propelled prices roughly 20 cents off the low. So far in the overnight and early morning trade that positive momentum has dissipated with futures trading within a dime of yesterday’s low. Today’s pivot pocket comes in from 1025-1031 3/4. The Bulls will want to defend this through today’s close. A failure to do so keeps the door open for a drop into the single digits.
Weekly Export Inspections: 403,268 metric tons. Above last week’s 338,225 MT. Current marketing year to date stands at 42,764,550 MT, VS the previous marketing year to date 50,517,104 MT.
Crop Progress: Good/excellent conditions for the U.S. soybean crop were reported at 67%, that was a 1% drop from the previous week and in line with the average estimate.
- Bias: Neutral
- Resistance: 1046-1050, 1061 1/2-1062 3/4
- Pivot: 1025-1031 3/4
- Support: 1000**
Below is a daily chart of November soybean futures
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