The grain sector was up slightly across the board, waiting on Monday’s USDA Crop Report, notes Oliver Sloup.
Corn (ZCZ)
Yesterday’s Close: December corn futures finished yesterday’s session up 1.75¢, trading in a range of 6¢. Funds were estimated buyers of 6,500 contracts.
Fundamentals: Yesterday’s weekly EIA ethanol report showed production at 1.040 million barrels per day, up from 1.031, still below last year’s levels. Export sales this morning came in at 42,500 metric tons, well below the low end of estimates. The USDA report is fast approaching, Monday at 11am CDT, below are the estimates.
Planted Acres: Range 83.494-89.8, Average 87.998
Harvested Acres: Range 76.114-81.9, Average 80.05
Yield: Range 161.0-167.2, Average 164.9
Production: Range 12.723-13.55, Average 13.193
Technicals: The market managed to defend the previous day’s lows and technical support again, we are now trading at the highest levels of the month. Previous support now becomes resistance.
Soybeans (ZSX)
Yesterday’s Close: November soybean futures finished yesterday’s session up 1.25¢, trading in a range of 7.5¢. Funds were estimated sellers of 500 contracts.
Fundamentals: The dust has seemingly settled following Monday’s volatile session, market participants are now focusing on Monday’s U.S. Department of Agriculture crop report, estimates are below. Export sales this morning came in at 101,600 metric tons, within the range of expectations.
Planted Acres: Range 78.0-83.5, Average 81.006
Harvested Acres: Range 77.3-82.8, Average 79.89
Yield: Range 46.0-49.0, Average 47.6
Production: Range 3.633-3.974, Average 3.800
Technicals: Not much has changed since mid-day Monday, the market is consolidating near support as we await Monday’s USDA report. In yesterday’s report we mentioned that we were at a good spot for bears to reduce shorts and bulls to consider buying, from the risk/reward perspective.
Wheat (ZWU)
Yesterday’s Close: September wheat futures finished yesterday’s session up 5.25¢, trading in a range of 12.75¢. Funds were estimated buyers of 1,500 contracts.
Fundamentals: Wheat futures were able to stage a bit of a rally into the afternoon session, this on the back of little news and technical buying. Export sales this morning came in at 487,700 metric tons, towards the top end of expectations.
Technicals: The inability to break support led to an afternoon buying spree, spilling over into overnight/early morning strength today.
Below are links where you can see all our technical support/resistance levels
Bill Baruch provides technical levels on all markets throughout the week at BlueLineFutures.com.
