Grain Sector Update

03/24/2020 10:48 am EST

Focus: COMMODITIES

Oliver Sloup

, Blue Line Futures

With all eyes on the financial sector, Oliver Sloup update grain price action.

Stock indices are higher this morning, at times trading to the limit up circuit breaker (5%). The crude oil market is firm. The grain sector is actually tradeable and may be a saner option.

Corn (ZCK)

Corn futures traded in a relatively tight range yesterday as the market tries to catch its breath. Does that mean the bottom is in? No. The technical failures and tails left on the chart from Thursday and Friday are still concerning. A near term consolidation could set up for a bear flag. The bears have control until we see consecutive closes back above $3.54-$3.56 ¾. The lingering fundamental concern is the ethanol demand coming to a screeching halt.

Bias: Neutral/Bearish
Previous Session Bias: Neutral
Resistance: 363 ½-365 ¾****, 373 ¼-375**
Pivot: 354-356 ¾
Support: 330-332

Soybeans (ZSK)

May soybeans extended their rally yesterday on the back of hopes for better demand and potential port disruptions in South America. The market is giving back some of those gains in the early morning trade as recent buyers look to capitalize on a heck of a run over the last three sessions. Resistance remains intact from $8.88 ½ to $8.89 ¾. This pocket represents the gap from March 6, along with other previously important price points. There’s not a log of significant support until we get back down to $8.54.

Bias: Neutral/Bullish
Previous Session Bias: Neutral/Bullish
Resistance: 888 ½-889 ¾***
Pivot: 875
Support: 854-854 ¾***, 842-845 ¼***, 820-821**

Chicago Wheat (ZWK)

May wheat ran up to our four-star resistance pocket but couldn’t get out above it, we have had that defined as $5.64 to $5.68 ½. This pocket represents a key retracement, along with other previously important price points. We wouldn’t be surprised to see some relief take us back in to the low to mid $5.40’s but the bulls now have the technical advantage and we would consider using a pullback to these levels as a buying opportunity.

Bias: Neutral
Previous Session Bias: Neutral
Resistance: 564-568 ½****
Pivot: 550-551 ½
Support: 540 ½-542 ½***, 523-528 ½***, 488 ¼-494****

Bill Baruch provides technical levels on all markets throughout the week at BlueLineFutures.comPlease sign up at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed to you each day.Email us at info@bluelinefutures.com to start the conversation and set up a phone call with our experts.

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