Grains Mixed in the Early Morning Trade

We were on RFD-TV yesterday morning sharing our thoughts on the grain and livestock markets.

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Corn

Technicals (July)
July corn futures were able to add to recent gains to start the week, that momentum has carried over into the overnight and early morning trade. That puts the market right near the breakdown point from the January 12th WASDE report. We’ve had a Bullish tilt in our bias and remain optimistic but feel this is a spot where we could see the market catch its breath. As mentioned in our interview with RFD-TV yesterday morning, there’s a big difference between hedging and speculating. If you’re a hedger you may consider being more aggressive in protecting the downside here, for old crop and new crop. Options can be a great tool to keep the upside open and protect the downside.

Yesterday’s crop progress report showed 49% of the crop planted in the US, that was in line with expectations but 5% behind the 5-year average pace. The biggest delays come from Illinois, Iowa, and Nebraska. 23% of the crop has emerged. Planting delays are certainly something to talk about, but we don’t feel that’s the main reason behind the recent rise in prices.

Bias: Bullish/Neutral

Resistance: 483 1/2-486***

Pivot: 471-474 3/4

Support: 456 1/2-460*, 448-451

Soybeans

Technicals (July)
July soybeans traded on both sides of unchanged yesterday, only to finish right near where we opened. The market is struggling to find new buying activity above our pivot pocket from 1220-1225. This will continue to be a battleground area. A breakout above or a failure could spark a 20-25 cent move in that direction. A break and close back below support from 1199 1/2-1204 could cause additional chart damage.

Yesterday’s crop progress report showed soybean planting in the US is 35% complete, 4% behind expectations but still 1% ahead of the 5-year average pace. 16% of the crop has emerged.

Bias: Neutral/Bullish

Resistance: 1252-1259, 1305 1/4-1311 3/4*

Pivot: 1220-1225

Support: 1199 1/2-1204, 1182 1/4-1186 1/4

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