The Grain Market Rally Takes a Pause
Posted: June 20, 2023, 7:32 a.m.
|
|
|
CornTechnicals (July) July corn futures opened the Monday night trade on higher ground, trading out above the 200-day moving average for the first time since February 22nd. The market has since reversed, trading back into negative territory for the day. If the weakness persists and leads to profit taking during regular trading hours, all eyes will be on Friday's breakout point from 622-626. This pocket will now act as significant support for the Bulls to defend.
Bias: Neutral Previous Session Bias: Neutral Resistance: 645-650***, 657-658** Support: 622-626****, 600-605*** 591 1/2** |
 |
|
|
Technicals (December)December corn futures came out of the gates strong last night, trading to their highest price since the first trading day of the year (January 3rd). The market has sense reversed as the FOMO turned to profit taking after such an incredible run higher to finish last week's trade. The sharp rally last week has created some air pockets on the chart, so volatility is expected to remain higher. Hot and dry has been plastered all over the headlines. In our opinion, short term price risk (especially for producers) has shifted towards "what if it rains?". We continue to believe it's prudent for hedgers to take advantage of the recent rally. Options can be a great tool to keep that upside open while establishing a price floor. On top of weather uncertainty, we also have a quarterly report next week that has historically been known to produce wide ranging swings. Over the last 5 years, December corn has averaged a 7% trading range on report day.
Bias: Neutral/Bearish Previous Session Bias: Neutral Resistance: 609-614****, 627-630*** Pivot: 584 Support: 571-576****, 556-560*** |
 |
|
|
SoybeansTechnicals (July) Like corn, July soybeans caught a nice pop on last night's open. But like corn, July soybeans has since softened up. The 100 and 200 day moving averages coupled with previous trendline resistance will act as support to start this week's trade, that comes in from 1440-1450. Below that is 1415-1426. Yes, that is a wider support pocket than we'd like to use, but it's the product of a highly volatile trade.
Bias: Neutral Previous Session Bias: Neutral Resistance: 1483-1485***, 1494-1501**** Support:1440-1450***, 1415-1426**** |
 |
Technicals (November)New crop soybeans opened the week sharply higher but have reversed and are currently 14 cents lower and back below the 200-day moving average, which it eclipsed on Friday for the first time since March 13th. Sharp moves higher often come with sharp retracements, so be sure to keep your hands in feet inside the ride at all times. The pivot pocket the Bulls will want to defend comes in from 1320-1330. A break and close below this pocket could spur additional profit taking from technical traders.
Bias: Neutral/Bearish Previous Session Bias: Neutral Resistance: 1364 3/4**, 1381-1387*** Pivot: 1320-1330 Support: 1195-1202 1/2***, 1167-1172*** |
 |
|
|
WheatTechnicals (July) On Friday, July Chicago wheat futures traded to the 100-day moving average for the first time since November 16. So far, that has acted as resistance. With corn and soybeans sharply higher on last night's open, it's safe to say the price action has been a disappointment to start the week.
Bias: Bullish Previous Session Bias: Bullish Resistance: 691-697***, 717**, 735-740**** Pivot: 660-670 Support: 643-649 1/4*** |
 |
Sign up below for a FREE trial of our daily commentary!
In case you haven't already, you can sign up for a complimentary 2-week trial of our complete research packet, Blue Line Express.
Sign up for a Free Trial
Start Trading with Blue Line Futures
Don't have an account with Blue Line Futures?
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