Daily Grain Technicals & Fundamentals (9.19.18)

Corn (December)

Yesterdays Close: December corn futures finished Fridays session down 5 cents, trading in a range of 6 cents.


Fundamentals: December corn continued to work lower yesterday in the absence of any bullish news, that coupled with a technical breakdown has the bears in a very comfortable spot. As the combines start to roll we are getting confirmation of big yields coming. Some of the pressure on the board may be from producers selling grain to make room in the bins for this years big crop. Low prices cure low prices, but we feel think it could get worse before it gets better.


Technicals: The conviction close below 350 accelerated the selling pressure as funds piled on and any remaining longs started throwing in the towel. Now that we are officially in uncharted territory we have to look at the continuous chart for the next support levels, we see that coming in from....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.


Soybeans (November)

Yesterdays Close: November soybean futures finished Fridays session down 10 cents, trading in a range of 13 cents.


Fundamentals: Soybeans continued to work lower yesterday along side corn as combines begin to roll and bullish headlines remain few and far between. Yesterday President Trump did say: If China retaliates against U.S. Farmers, will consider imposing $257 billion in additional tariffs. This provided a quick 4 cent pop but was not enough to encourage additional short covering. As with corn, low prices cure low prices, but we feel think it could get worse before it gets better.


Techncials: The market has made new lows this week, proving once again that the only thing you get from picking bottoms is stinky fingers. Previous support now becomes resistance, we see that coming in from 821 -826 . If the bulls can reclaim ground above here we could see short covering ensue, until then, the bears have a firm handle on the market. We are in uncharted territory, so finding the next meaningful support pocket becomes more difficult. The next obvious target would be....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.


Wheat (December)

Yesterdays Close: December wheat futures finished yesterdays session up 3 cents, trading in a range of 8 cents.


Fundamentals: Wheat managed to rally slightly over 3 cents on what was mostly some light short covering, not concerns over tightening global supplies like some analysts were suggesting yesterday. We know that supplies are plentiful, and demand is dismal, this will likely keep a lid on any significant rally. The lack of new news on the wires has our focus on technicals this week.


Technicals: Not much has changed on the technical landscape for us. Previous support continues to be our first resistance pocket, this comes in from 518 -523 . This pocket represents a key retracement on the year, the 200-day moving average, and trendline resistance. This will be the pocket where bears will likely look to sell on the first test. If the bulls manage to chew through resistance and can achieve consecutive closes above this pocket....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.


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