Corn, soybeans, and wheat are all lower in the early morning trade as crop estimates continue to be a headwind.
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Corn
Technicals (December)
December corn futures struggled in the back half of last week’s trade, that weakness has spilled over into weakness early on with prices marking new lows. With the market in uncharted territory, finding meaningful support becomes even more difficult than it otherwise would. Looking at continuous charts and extensions, we see 380 as the next line in the sand. On the resistance side of things, the Bulls need to get back out above 398 1/2-400.
Short Term Bias and Technical Levels of Importance
- Bias: Neutral
- Resistance: 406 1/4-409, 421 3/4-423 3/4*
- Pivot: 398 1/2-400
- Support: 380*
Below: Daily Chart of December Corn Futures.
Notes
- Pro Farmer released their national average corn yield estimate on Friday afternoon, coming in at 181.1 bushels per acre, this compares with the USDA’s current estimate of 183.1.
- Weekly Export Inspections: Released at 10am CT.
- Commitment of Traders: Friday’s report showed a net-short position of 257,896 positions across futures and options. While managed money’s net-short position grew by 8,889 positions from last week, they are well off from their record net-short position of 353,983 positions from July 9th.
Chart of Interest
Below is a look at price averages for December corn over a 5, 10, and 15 year period. Past performance is not necessarily indicative of future results.
Soybeans
Technicals (November)
November soybeans made some ground back in Friday’s trade but have given some of that back after Pro Farmer released a larger than expected national average yield estimate for soybeans. Trendline resistance and the 20-day moving average are continuing their rapid decline, lowering the hurdle that the Bulls need to get out above for a chance at neutralizing the technical damage that has been done on the chart. We see that major resistance pocket coming in from 984 3/4-991.
Short Term Bias and Technical Levels of Importance
- Bias: Neutral
- Resistance: 984 3/4-991, 1000-1006 1/2
- Pivot: 975 1/2-980
- Support: 950-955 1/4*
Below: Daily Chart of November Soybean Futures
Notes
- Pro Farmer released their national average soybean yield estimate on Friday afternoon, coming in at 54.9 bushels per acre, this compares with the USDA’s current estimate of 53.2.
- Weekly Export Inspections: Released at 10am CT.
- Commitment of Traders: Managed money is reportedly holding a net-short position of 182,768 across futures and options. That’s an increase of 8,321 positions from last week’s 174,447 position net-short, and they are now within 3,000 contracts of their record net short position of 185,750 established in early July.
Chart of Interest
Below is a look at price averages for November soybeans over a 5, 10, and 15 year period. Past performance is not necessarily indicative of future results.
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