Crop Conditions Continue to Fuel the Grain Rally
Posted: June 21, 2023, 8:18 a.m.
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CornTechnicals (July) July corn futures broke out above resistance overnight which we outlined as 645-650, that opened the door to a swing higher to our next pocket, 657-658, which is where prices lay this morning, their highest prices since February 23rd. If the Bulls can keep the ball rolling in their favor, a close above this pocket could take prices back to the top end of the range from the Dec/Jan/Feb time frame, 670-675.
Bias: Neutral Previous Session Bias: Neutral Resistance: 657-660**, 670-675**** Pivot: 645-650 Support: 622-626****, 600-605*** 591 1/2** |
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Technicals (December)December corn futures gapped higher last night following another decline in crop conditions, which showed the lowest Good/Excellent ratings for this week since 1992. Prices have traded out above our 4-star resistance pocket overnight, 609-614. We will be watching this pocket closely through the session. If the Bulls can keep the ball rolling in their favor, the next significant resistance pocket and potential target would be 627-630. With that said, the parabolic move over the last week does create a lot of air pockets in the chart which could keep volatility elevated as we head into next week's acreage report, which also marks the last trading day of the month and quarter. We continue to believe that producers should manage risk at these levels, there are plenty of ways to do that while keeping the upside open.
Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish Resistance: 627-630*** Pivot: 609-614 Support: 571-576****, 556-560***
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SoybeansTechnicals (July) July soybean futures continue to propel higher, trading back to resistance points from the first half of April, 1494-1501. The sharp move higher leaves risk of sharp pullbacks so position sizing and risk management will become increasingly important.
Bias: Neutral Previous Session Bias: Neutral Resistance: 1494-1501****, 1519-1525*** Support: 1483-1485***,1440-1450*** |
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Technicals (November)November soybean futures are higher in the early morning trade but have not taken out yesterday's highs yet, which may be indicating some minor near term exhaustion. At this point in the rally, consolidation and even a retracement would likely be welcomed by the Bull camp. As with corn, we continue to believe that producers should manage risk at these levels. There are plenty of ways to do that while keeping the upside open.
Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish Resistance: 1364 3/4**, 1381-1387*** Pivot: 1320-1330 Support: 1195-1202 1/2***, 1167-1172*** |
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WheatTechnicals (July) July Chicago wheat futures are tagging along with corn and soybeans, trading to multi-month highs. Significant resistance for the July contract comes in from 735-740. We remain upbeat on wheat and believe a longer-term uptrend could be in the making.
Bias: Bullish Previous Session Bias: Bullish Resistance: 717**, 735-740**** Pivot: 691-697 Support: 660-670***, 643-649 1/4*** |
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