Grains out of gas?

CORN (March)

Yesterdays Close:March corn futures finished yesterdays session down of a cent, trading in a range of 2 cents on the day.

Fundamentals:There has not been a whole lot of new news across the wires over the last 24 hours which is reflected by the trading range from yesterdays report. We may start to see producer selling pick up if we see new crop December futures work closer to that psychologically significant $4 handle. CPI data came out at 7:30cst this morning and was better than expected, this sent the dollar bid which put some pressure on commodities. The USD may be a driver today if it gets some follow through. Export sales will be watched closely tomorrow morning now that USDA had increased those figures, we will have that data in tomorrows report.

Technicals:March corn futures poked their head above last weeks high, marking the highest price print since October 25th. The inability to feed off the momentum may lead to a retracement in the back half of the week. Our resistance pocket from 366 -369 continues to hold, but bears want to see more of a rejection against this pocket to encourage more pressure. The more times a technical lever is tested, the less significant it becomes (like a wrecking ball against a building). If the bulls can achieve a breakout we expect to see additional short covering from funds press prices towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

SOYBEANS (March)

Yesterdays Close: March soybean futures finished the session up 9 cents, trading in a range of 14 cents on the day.

Fundamentals: South American weather continues to be the key catalyst, this will likely keep the volatility in play for the intermediate term. Argentina has missed a lot of opportunities to get much need rains, this is helping to offer support despite the bearish USDA report we saw last week. Export sales and NOPA crush are tomorrow, it will be nice to get some news that doesnt revolve around weather. The average estimate for January crush comes in at 165.51 million bushels, this would be one of the bigger January numbers on record. CPI came in better than expected which sent the dollar bid and commodities lower. Meal is also softer on that data which could spill over into beans.

Technicals:The bulls managed to close prices above resistance which we had outlined as 1001-1006, this will now become support. The bulls have their eye on a run towards the next pocket which we see as 1020-1027. Higher highs and higher lows over the last month have the bulls in control of the technicals. If Argentina does get the much-needed rain, we could see the market retreat quickly. The significant support pocket below $10 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.

WHEAT (March)

Yesterdays Close: March wheat futures finished yesterdays session down 5 cents, trading in a range of 8 on the day.

Fundamentals: CPI data came in better than expected this morning which sent the dollar bid and most commodities lower, wheat included. Currency volatility will continue to have spill over affects to the commodity sector. Weather continues to be monitored closely. Though rain is expected in some areas over the next 1-2 weeks, the driest areas are expected to be skipped over.

Technicals: The market tried to work higher yesterday but failed to attract new buyers. Technical resistance from 470 -472 continues to hold. If the market fails to breakout above this level we expect to see some premium come out of the market. 456 is a pivot point for us. A close below opens the door 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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