Oliver Sloup provides support and resistance levels in the grain complex.
Corn (ZCN)
Fundamentals: May futures are officially in delivery mode which could provide some very near-term relief, but the intermediate term fundamental landscape will likely keep the upside limited. For clients who want to try nibbling on the long side we were buying yesterday afternoon with the plan to be flat or possibly flip back short over the weekend. Weather forecasts look favorable right now, and that could lead to pressure come Sunday night, especially if we do get some relief in the next two sessions. Export sales this morning came in at 1,356,700 metric tons, 87% higher than the previous week and 19% above the four-week average.
Technicals: July futures managed to defend the contract lows by ¼ of a cent. We think there is a tradable, short term low here for the next two sessions. So, if you’ve been short you may consider reducing with the idea of reentering before the weekend, regardless of price (hopefully better prices). If you want to be long, the risk is well defined, and the time frame is short.
Bias: Neutral
Previous Session Bias: Neutral/Bearish
Resistance: 330-333****, 343 ¼-344 ¾**
Pivot: 316-317 ¾
Support: 308 ¼-310*** 298 ¾-301 ¼**
Soybeans (ZSN)
Fundamentals: July soybean futures managed to hold the previous day’s low and rally, sparking some short covering in the overnight/early morning trade. Export sales this morning came in at 1,078,300 up noticeably up from the previous week and the 4-week average.
Technicals: The bulls manage to defend our pivot pocket with a little more conviction Wednesday, leading to some relief in the early morning trade. First meaningful resistance comes in from $8.57 to $8.61 ¼. If you are long the market, this would be your first target to look at capitalizing on something.
Bias: Neutral
Previous Session Bias: Neutral/Bearish
Resistance: 857-861 ¼****, 871 ¼-875**
Pivot: 829-834
Support: 818-821***, 808 ¼***, 791**
Chicago Wheat (ZWN)
Fundamentals: Wheat continued to roll over yesterday as the lack new news encourages long liquidation. Export sales this morning came in at 467,400 metric tons, up 91% from last week, and up noticeably from the 4-week average.
Technicals: The market has retreated into our three-star support pocket $5.06 ¼ to $5.12 ¼. If you have been short the market for the last week, this is the spot to consider reducing. We are still Bearish the market but wouldn’t be surprised to see some near-term relief.
Bias: Bearish/Neutral
Previous Session Bias: Bearish
Resistance: 538-540 ½**, 552-554 ¾***, 562-565½****
Pivot: 520-525
Support: 506 ¼-512 ¼***, 491 ¾-494 ¼****
Bill Baruch provides technical levels on all markets throughout the week at BlueLineFutures.com. Please 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.
