CBT Grain futures comments for March 13th 2019 – BrokersEDGE

Corn (May)
Yesterday’s Close: May corn futures finished yesterday’s session up 3 ½ cents, trading in a range of 6 ½ cents. Funds were estimated buyers of 12,500 contracts
Fundamentals: Short covering in wheat spilled over into support for the corn market in yesterday’s session, the bulls must see follow through before the weekend to feel comfortable about a near term bottom being in place. The market is softer in the early morning trade but the volume is light, so we are taking it with a grain of salt. Yesterday’s volume for the May contract was 70% greater than the previous day’s move to contract lows. Weather will continue to be a hot topic as we get closer to spring. There is also a USDA report at the end of the month.
Technicals: Relative to the strength in wheat, corn was mute. The market bumped up against resistance but ran out of conviction for a bigger move higher. That resistance pocket this morning comes in from 367 ½-370 ½, we believe that consecutive closes above this pocket would mark a near term bottom and spark a bigger round of short covering.
Bias: Neutral/Bullish
Resistance: 367 ½-370 ½***, 377-380***
Support: 360-361***, 350**

Soybeans (May)
Yesterday’s Close: May soybean futures finished yesterday’s session up 6 ¾ cents, trading in a range of 12 cents. Funds were estimated buyers of 6,500 contracts.
Fundamentals: Soybeans caught some relief on broad short covering in the grain markets. With little changed on the fundamental landscape, we would not be surprised to see the market consolidate near 900. Trade talk continues to be a point of interest, but it seems the market has grown tired of the forced optimism. NOPA crush will be out Friday morning, early estimates for that is near 158.75 million bushels.
Technicals: Yesterday’s bounce was a silver lining, but bulls need to see follow through before the weekend to have more conviction about it being a meaningful rally as opposed to a relief rally. The market pressed up against our first resistance pocket yesterday, we had defined that as 900-903. This pocket represents previous support, a key retracement, along with the psychologically significant 9.00 handle. Consecutive closes above this pocket could spur another round of buying.
Bias: Neutral
Resistance: 900-903***, 909-913 ½**, 922 ¼-924 ¾***
Support: 884 ¾-887 ¾**, 870-873 ½***, 853****

Wheat (May)
Yesterday’s Close: May wheat futures finished yesterday’s session up 24 ½ cents, trading in a range of 29 ½ cents. Funds were estimated buyers of 10,500 contracts.
Fundamentals: Wheat futures saw a healthy dose of short covering in yesterday’s session but have failed to find follow through buying in the overnight/early morning trade. We generally take the overnight session with a grain of salt as the volume is too thin to hang a hat on. Export sales tomorrow will be the big-ticket item for the remainder of the week.
Technicals: Yesterday’s wave of short covering brought the RSI back above oversold conditions for the first time in 11 sessions. Higher volatility markets create a more emotional trade, so the technicals are a lot less clear cut in this type of environment. First resistance today comes in from 457. The more significant level above the market comes in from 472 ¼-475. This pocket represents the lows on February 25th and a key Fibonacci retracement. On the support side of things, 434 ¼-441 ¾ is a must hold pocket for the bulls.
Bias: Neutral/Bullish
Resistance: 457**, 464**, 472 ¼-475****
Support: 434 ¼-441 ¾**, 425-427**

If you have any questions about the commodity futures and options markets, trading or opening an account please let us know!
For more information please contact DAW Trading at or at 877-329-0006 and visit us at
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. DAW Trading (“DAW”) uses various outside sources for research material regarding futures and options on futures trading therefore the views and opinions expressed in this letter may not necessarily reflect the view of DAW or its staff. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to DAW.
CONFIDENTIALITY NOTICE: The contents of this email message and any attachments are intended solely for the addressee(s) and may contain confidential and/or privileged information and may be legally protected from disclosure. If you are not the intended recipient of this message or their agent, or if this message has been addressed to you in error, please immediately alert the sender by reply email and then delete this message and any attachments. If you are not the intended recipient, you
are hereby notified that any use, dissemination, copying, or storage of this message or its attachments is strictly prohibited.

Sign Up for BrokersEDGE

Talk to a broker

DAW Trading