Too Far, Too Fast?

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Corn (July)


Yesterdays Close: July corn futures finished yesterdays session up 11 cents, trading in a range of 12 cents.


Fundamentals: We are officially in a weather market, which means Sunday night opens will be more volatile. The market is pricing in wet weather over the weekend, if it were to miss and dry out, we would expect a gap lower. A wetter forecast, chances are for a gap higher. Yesterdays export sales came in at 634,163 metric tons, within the range of expectations.


Technicals: The market is moving north of first resistance at 381 in the early morning trade, the next resistance pocket comes in from 386 -390. This pocket represents the 200-day moving average, a key retracement, and the top end of the range from the end of March. A move above here warrants a move towards 398 -401. Previous resistance now becomes support, the bulls want to defend 370 -373 . There is a lot of talk about too far too fast (agree to an extent), that is not a good enough reason for us to start shorting this market, our bias remains bullish.


Bias: Bullish/Neutral


Resistance: 387 -390****, 398 -401***

Pivot: 381

Support:370 -373 ***, 356-357 ****


Soybeans (July)


Yesterdays Close: July soybean futures finished yesterdays session up 5 cents, trading in a range of 11 cents.


Fundamentals: Soybeans are softer in the early morning trade as Chinese leaders put the trade tiff blame on the administration. They also noted that they would not meet with U.S. representatives until the two leaders met first, at the G-20 summit in June. Export sales yesterday morning came in at 674,308 metric tons, this was within the range of expectations. Weather is becoming a conversation piece for soybeans recently. If delays in corn planting continue, we could see acres shift. With that said, some of those acres will go prevent with the way things are looking right now.


Technicals: The market finished higher yesterday, finishing the day right at our pivot point of 840 . If the bulls can achieve consecutive closes above here, the nest line in the sand comes in near 867. A failure to gain traction could lead to a round of profit taking from recent buyers. First technical support comes in from 824 -827. We have turned our bias back to neutral this morning as fundamentals remain heavy and technical resistance looks to be holding.


Bias: Neutral


Resistance: 865-867**, 887 **, 896 -901 ****

Pivot: 840

Support: 824 -827**, 800-805 ****, 791**


Wheat (July)


Yesterdays Close: July wheat futures finished yesterdays session up 19 cents, trading in a range of 22 cents.


Fundamentals: Short covering in the grain sector continues to he be name of the game as fund buying supports corn and wheat. Export sales yesterday morning came in at 533.9 tmt, towards the top end of expectations. We will continue to keep a close eye on money flow and technicals as those two will be leading drivers for the remainder of the week.


Technicals: The market moved out above technical resistance which opens the door for an extension towards 479 -482 . This pocket represents the 100-day moving average and the top end of the range from late march and early April. We would not be surprised to see the market catch its breath here. There is a lot of talk about too far too fast (agree to an extent), that is not a good enough reason for us to start shorting this market, our bias remains bullish.


Bias: Bullish/Neutral


Resistance: 479 -482 ****, 500-505 ****

Pivot: 450-455

Support: 435-436 ***, 426-427**


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Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.