Grains Under Pressure in the Early Morning Trade. Will Support Hold?
Posted: July 7, 2023, 8:15 a.m.
Flash Sale: Export Sales to MexicoPrivate exporters reported sales of 180,000 metric tons of corn for delivery to Mexico. Of the total, 45,000 metric tons is for delivery during the 2022/2023 marketing year and 135,000 metric tons is for delivery during the 2023/2024 marketing year. Weekly Export Sales HighlightsCorn: Net sales of 251,700 MT (9,908,988 bushels) for 2022/2023 were up 79 percent from the previous week and 62 percent from the prior 4-week average. Net sales of 418,000 MT (16,455,928 bushels) for 2023/2024 Soybeans: Net sales of 187,800 MT (6,900,466 bushels) for 2022/2023 were down 17 percent from the previous week and 45 percent from the prior 4-week average. Net sales of 592,800 MT (21,781,665 bushels) for 2023/2024. Wheat: Net sales of 405,800 MT (14,910,593 bushels) for 2023/2024. |
|
|
CornTechnicals (December)December corn futures took out the previous day's high for the first time in nearly two weeks, trading into our pivot pocket from 505-511. We were hopefully that yesterday's strength would spill into some follow-through momentum in the overnight and early morning trade that is not the case in the early morning session. If the Bulls can chew through 505-511 on a closing basis it could open the door for another leg higher with the next objective coming in near 520. On the support side, a failure to defend the psychologically significant $5.00 handle could lead to a retest of 485-490. Below that pocket and you could see prices snowball lower. Volatility has come off the highs (48.51) with the CME Corn CVOL index at 35.66. This may start to make options more attractive either as a hedge or a way to gain exposure, ahead of next week's USDA report. Bias: Neutral/Bullish Previous Session Bias: Neutral/Bullish Resistance: 518-525 3/4***, 540 1/2-545 ** Pivot: 505-511 Support: 485-490***, 476**, 460-465**** |
|
|
Soybeans |
Technicals (November)November soybean futures have taken out yesterday's low but are trying their best to defend the 200-day moving average, which comes in at 1332 3/4 this morning. If the Bulls fail to find their footing here, we could see the selling accelerate with a potential retest of the 100-day moving average in the cards. That comes in at 1290 1/2, which also coincides with the breakout point from last Friday's acreage report. The CME Soybean CVOL index is at 27.44, off the highs from June 21st (33.37). Typically, we see volatility peak out around this time of year. Will that hold true again this year or are there more surprises around the corner? We generally side with history in this situation, but that doesn't mean you can let your guard down. Bias: Neutral/Bearish Previous Session Bias: Neutral Resistance: 1390-1400***, 1427 3/4*** Pivot: 1340-1350 Support: 1324-1332 3/4**, 1291-1300*** |
WheatTechnicals (September) Wheat futures continue to be a source of disappointment for those with a bullish bias. This week's high and low mark the support and resistance levels to keep an eye on. A breakout or breakdown could spur a bigger directional move for the market. Our bias remains Neutral/Bullish, aka cautiously optimistic. Bias: Neutral/Bullish Previous Session Bias: Neutral/Bullish Resistance: 676-680****, 694-700*** Pivot: 654-661 Support: 636-639***, 623-625*** |
Sign up for a 14-day, no-obligation free trial of our proprietary research with actionable ideas!
Free Trial
Start Trading with Blue Line Futures
Subscribe to our YouTube Channel
Email info@Bluelinefutures.com or call 312-278-0500 with any questions -- our trade desk is here to help with anything on the board!
Futures trading involves 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 identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
Like this post? Share it below:
Back to Insights
In case you haven't already, you can sign up for a complimentary 2-week trial of our complete research packet, Blue Line Express.
Free Trial