Grain markets have flatlined to start the week as the lack of new news has kept buyers and sellers at bay. These are the technicals we are watching that could change that.
Check out Blue Line Futures for technicals on Soybeans, Wheat, and Corn:
https://bluelinefutures.com/2024/04/09/the-flatline/
Corn
Technicals (May)
May corn futures were able to gain some ground yesterday, but it wasn’t anything that altered the technical landscape. Prices remain near our pivot pocket from 431 1/3-435, which happens to be in the middle of support and resistance. We think corn can grind higher from these levels to retest the top end of the range, but it may be the deferred contracts that have a better chance at doing that as they have a more constructive technical picture.
Bias: Bullish/Neutral
Resistance: 441 3/4-444 1/2, 447 1/2-450*
Pivot: 431 1/2-435
Support: 421-422***
Fund Positioning
Friday’s Commitment of Traders report showed that Funds were net sellers of about 8k contracts (through 4/2/24), that puts their net short position at 259,556.
Seasonal Trends
Below is a look at price averages for December corn, using the 5, 10, 15, 20, and 30 year averages.
Soybeans
Technicals (May)
May soybean futures made an attempt to move higher yesterday but reversed to finish lower and near the low end of the day's range. That bearish reversal has led to additional weakness in the overnight and early morning trade. Support is coming into play from 1170-1175. If you're bullish, this is what we view as a MUST HOLD pocket. A break and close below here could reignite selling pressure. Resistance on the upside from 1198-1205 1/2 remains intact.
Bias: Neutral/Bullish
Resistance: 1198-1205 1/2, 1212 3/4-1216
Pivot: 1187
Support: 1170-1175, 1161-1167*
Fund Positioning
Friday's Commitment of Traders report showed Funds were net sellers of roughly 3.5k contracts, trimming their net short position to 138,256 contracts.
Seasonal Trends
(Past performance is not necessarily indicative of future results)
Below is a look at price averages for November soybeans, using the 5, 10, 15, 20, and 30 year averages.
Wheat
Technicals (May)
May wheat failed to take out the previous day's high in yesterday's trade and reversed lower, which has spilled into weakness overnight and this morning. Previous trendline resistance will now act as support, with trendline support coming in just under that. 550-555 is the pocket the Bulls need to defend this week to keep the momentum in their favor.
Bias: Neutral/Bullish
Resistance: 568 1/2-570, 595 3/4-600, 608 1/2-611**
Pivot: 550-555
Support: 525**
Fund Positioning
Friday's Commitment of Traders report showed Funds were basically flat last week. They are net short 91,944 contracts.
Seasonal Trends
Below is a look at price averages for July wheat, using the 5, 10, 15, 20, and 30 year averages. Historically this isn't the most friendly time of year.
Disclaimer:
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
Performance Disclaimer
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
Check out Blue Line Futures for technicals on Soybeans, Wheat, and Corn:
https://bluelinefutures.com/2024/04/09/the-flatline/
Corn
Technicals (May)
May corn futures were able to gain some ground yesterday, but it wasn’t anything that altered the technical landscape. Prices remain near our pivot pocket from 431 1/3-435, which happens to be in the middle of support and resistance. We think corn can grind higher from these levels to retest the top end of the range, but it may be the deferred contracts that have a better chance at doing that as they have a more constructive technical picture.
Bias: Bullish/Neutral
Resistance: 441 3/4-444 1/2, 447 1/2-450*
Pivot: 431 1/2-435
Support: 421-422***
Fund Positioning
Friday’s Commitment of Traders report showed that Funds were net sellers of about 8k contracts (through 4/2/24), that puts their net short position at 259,556.
Seasonal Trends
Below is a look at price averages for December corn, using the 5, 10, 15, 20, and 30 year averages.
Soybeans
Technicals (May)
May soybean futures made an attempt to move higher yesterday but reversed to finish lower and near the low end of the day's range. That bearish reversal has led to additional weakness in the overnight and early morning trade. Support is coming into play from 1170-1175. If you're bullish, this is what we view as a MUST HOLD pocket. A break and close below here could reignite selling pressure. Resistance on the upside from 1198-1205 1/2 remains intact.
Bias: Neutral/Bullish
Resistance: 1198-1205 1/2, 1212 3/4-1216
Pivot: 1187
Support: 1170-1175, 1161-1167*
Fund Positioning
Friday's Commitment of Traders report showed Funds were net sellers of roughly 3.5k contracts, trimming their net short position to 138,256 contracts.
Seasonal Trends
(Past performance is not necessarily indicative of future results)
Below is a look at price averages for November soybeans, using the 5, 10, 15, 20, and 30 year averages.
Wheat
Technicals (May)
May wheat failed to take out the previous day's high in yesterday's trade and reversed lower, which has spilled into weakness overnight and this morning. Previous trendline resistance will now act as support, with trendline support coming in just under that. 550-555 is the pocket the Bulls need to defend this week to keep the momentum in their favor.
Bias: Neutral/Bullish
Resistance: 568 1/2-570, 595 3/4-600, 608 1/2-611**
Pivot: 550-555
Support: 525**
Fund Positioning
Friday's Commitment of Traders report showed Funds were basically flat last week. They are net short 91,944 contracts.
Seasonal Trends
Below is a look at price averages for July wheat, using the 5, 10, 15, 20, and 30 year averages. Historically this isn't the most friendly time of year.
Disclaimer:
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
Performance Disclaimer
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.