---

Watch us on RFD-TV, today at 9:45 AM CT

 

Fed Watch The Federal Reserve will announce their rate hike decision on Wednesday. The consensus is for a 75-basis point hike. This would be the third straight 75 bp hike as the Fed attempts to halt inflation which is at 40-year highs. There are some analysts who believe the Fed may be "over correcting" in their efforts after ignoring the problem for far too long. Taiwan In a 60 Minutes Interview that aired on Sunday, President Biden was asked if U.S. forces would defend Tawain if it was invaded by China. The response: "Yes, if in fact, there was an unprecedented attack.". As you could probably imagine, military conflict between The United States and China would not be Bullish for agricultural products. Ukraine Grain Reuters is reporting that "a total of 165 ships with 3.7 million tonnes of agricultural products on board have left Ukraine under a deal brokered by the United Nations and Turkey to unblock Ukrainian sea ports". Russian President Vladimir Putin has recently expressed that this deal needs to be reviewed. Harvest and Seasonals Harvest will continue to ramp up throughout the Midwest, which may add a headwind to the market. The bearish Soybean seasonal started on September 17th and goes through October 2nd. This time frame has been bearish for 13 of the last 15 years with the average decline being roughly 45 cents.

---

 

Corn

Corn futures are drifting lower in the early morning trade as a bit of a risk-off trade sweeps through commodities. With that said, the Friday low (667 1/2) is still intact, which comes in just above our 3-star support pocket, 665-667. A failure to defend this pocket could open the door for additional selling pressure, with little support until closer to 650. Our bias is still in Neutral territory as we continue to believe there will be short-term opportunities for Bulls and Bears in this environment.

Technicals Premium

🔒 You need to be a Premium User to unlock this content. Click here to unlock.

Soybeans

Soybean futures were higher in the overnight session but have retreated back near unchanged, which is in our pivot pocket, 1446 1/4-1450 1/2. This is a bit of a "must-hold" pocket for the Bulls, a failure to defend this could trigger a retracement of the breakout point from the USDA report day, 1407 1/2-1415 3/4. The 50 and 200 day moving averages are also near this pocket.

Technicals Premium

🔒 You need to be a Premium User to unlock this content. Click here to unlock.

Wheat

Chicago wheat futures are softer in the early morning hours, currently down 20 cents, but still defending Friday's low. A close below Friday's low would neutralize our bias, that is at 830 3/4. The US Dollar continues to linger near 20-year highs, which may be acting as a headwind.

Technicals Premium

🔒 You need to be a Premium User to unlock this content. Click here to unlock.

---

Grains Soybeans Corn Wheat

Like this post? Share it below:

Back to Insights