Blue Line Express

Grain Market Update

CORN (May)

 

Yesterday’s Close:  May corn futures closed 7 cents lower yesterday, trading in a range of 7 ¼ cents on the day.  Funds were estimated to have been sellers of 25,000 contracts.

 

Fundamentals:  Export inspections yesterday morning came in at 1,409,281 metric tons, this was towards the top end of the expected range from 1,200,000-1,500,000 metric tons; last weeks number came in near 1,377,000 metric tons.  USDA announced the sale of 206,000 metric tons of corn to Japan and another sale of 115,000 metric tons to unknown.  Much of yesterdays pressure came on the back of tremendous weakness in the soybean and wheat markets as the pressure fed on itself through the session due to better weather forecasts.  The highly anticipated Prospective Plantings report is just over a week away and we could see additional position squaring ahead of that.

 

Tehcnicals:  The past four sessions have done a lot of technical damage as they have now erased the gains from the previous 12 sessions combined.  The breakdown below technical support encouraged long liquidation; we would not be surprised to see a little more follow through in the near term.  First technical support for today’s session comes in from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

 

SOYBEANS (May)

 

Yesterday’s Close:  May soybeans finished the day down 24 ¾ cents, trading in a range of 23 ¾ cents for the day (gap lower).  Funds were estimated sellers of 16,000 contracts.

 

Fundamentals:  Export inspections yesterday morning came in at 490,536 metric tons, well below the expected range of 700,000-1,050,000 metric tons; last weeks inspections number came in at 930,000 metric tons.  Weather in Argentina is the main headline driver for the weakness which seemingly fed on itself through the session.  The near-term weather outlook offers the chance for additional precipitation.  We will continue to keep an eye on this and the true affects as harvest starts to pick up.  The all important Prospective Plantings report is just over a week away, we will hope to have estimates compiled for you by early next week. 

 

Technicals:  Soybeans have been trading technically sound for the past two weeks as funds have started to unwind some of their net long position.  First support this morning comes in from 1018-1021 ¾, below that likely encourages additional long liquidation towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

 

WHEAT (May)

 

Yesterday’s Close:  May wheat futures finished yesterdays session down 16 cents, trading in a range of 15 ¾ cents on the day (gap lower).  Funds were estimated sellers of 13,000 contracts on the day.

 

Fundamentals:  Export inspections yesterday morning came in at 443,269 metric tons, this was right at the top end of the expected range from 275,000-450,000 metric tons; last weeks inspections number came in at 429,000 metric tons.  Weather was the major headline to start this week’s trade, good rains in some key areas with potentially more on the way led to the rapid decline in prices.  We continue to keep an eye on the KC contract is it will likely continue to be the leader.

 

Technicals:  A technical graveyard would be the best description of the wheat chart as we have seen prices slice right through all sorts of important indicators.  Technical support held on the close yesterday which we had outlined ass 451-456 ¼.  A breakdown below takes us to....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

 

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Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.