Grain Markets Pop and Drop
Posted: July 25, 2023, 8:18 a.m.
CornTechnicals (December) December corn had an impressive rally yesterday, thanks in part to a wheat market that spent much of the afternoon locked limit higher. Corn traded within a few ticks of significant 4-star resistance which we laid out as 573-576. This pocket represents a key retracement, previously important price points, and the 200-day moving average. Unfortunately for the Bulls the overnight follow-through for corn has been non existant and for wheat, it has turned into weakness this morning. At the time of writing this wheat is over 30 cents off the high and down 12 cents, which is spilling into weakness for corn which has taken prices back to the 50% retracement from this summer's move. Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish Resistance: 562-564***, 573-576****, 600** Pivot: 554-556 Support: 540 1/2-545***, 518-525 3/4*** |
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Soybeans |
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Technicals (November) November soybeans were able to join the rally party yesterday on the back of spillover strength from wheat along with some help from an unexpected flash-sale to China. Yesterday's rally took prices right to our 4-star resistance pocket, which we have had outlined as 1427 3/4-1435. The failure has brought prices back near our pivot pocket, 1390-1400. A break and close below the pivot pocket could spur additional profit taking from the nice run higher that has taken place over the last two-weeks. Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish Resistance: 1427 3/4-1435****, 1448-1455*** Pivot: 1390-1400 Support: 1368-1378***, 1324-1332 3/4***, 1291-1300**** |
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WheatTechnicals (September) Wheat futures finished yesterday's trade locked limit higher which gives us expanded limits today (90 cents). The move out above the 200-day moving average and trendline resistance may have helped spur additional short covering amidst the uncertainty of future headline risk. The market saw follow-through buying in the overnight trade but that has turned to weakness with the September wheat contract currently down about 13 cents and over 30 cents off the high. Coincidently, the market seems to have found some support at what was resistance yesterday, 744-745 (old trendline resistance and the 200-day). A failure to defend this pocket could trigger additional liquidation from those that chased it higher yesterday. The next support area comes in near 726 3/4. Bias: Neutral Previous Session Bias: Neutral Resistance: 770-777 1/2****, 800**, 814-816 3/4**** Pivot: 744-745 Support: 726 3/4**, 693 1/2-698 3/4***, 678-688*** |
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