Are Corn and Soybeans on the Verge of a Breakout?

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Transcript: I have 36 points as we speak right now. All right, let’s bring them in our next guest enlists Oliver Sloup Blue Line futures in Chicago all over. Thanks for being on the show. What’s jumping on you anything there?
Got green on the screen man across the board, it feels feels like it’s been a lifetime and coming in to the early morning trade at the intermission after 745 It’s like, All right, do we really trust this rally so many times over the last few weeks, we’ve gotten the head fake, where we’re higher in the overnight trade, and then just give it all back right on the open. So the fact that we’re seeing this buying continue past the 830, central time open is certainly encouraging. But we’ll still have a little bit of work to do for him, right, we look at that core market, we’ve been stuck in a range 403 to 413 since July 8, and just so happened to hit the top in that if we’re able to get out above there on a closing basis, I think that’s where things could get a little bit more exciting. And for soybeans, we’re looking at that 11 or 1060 to 1064 level, which was last week’s high. If we can get a close out above there, I wouldn’t be surprised to see us tack on another 2025 sets, which which was old support from June and the breakdown point at the start of July near 1190. So our 1090 I’m sorry. So I think there’s more upside potential here. But we’re kind of at an inflection point where we just need to see a little bit more confirmation. Yeah,
I mean, maybe we’ll need something like the weather or something like demand to kind of put us over the top there. I think you’re right, we’ve kind of got a little bit of a standoff between the big fun shorts and on farm storage and other Long’s out there. And I just feel like the clock is working against the Long’s and not for the shorts. What do you think? Yeah,
I would agree with that. You’d mentioned demand potentially being the catalyst for another leg higher and I think that’s what most people are looking at specifically for the soybeans, we saw pretty good exports week over week and above the four week average we saw China or unknown which was presumably China with a pretty big flash sale last week. And there’s rumors that you know, China may be back in the market this week. So that certainly feeling some optimism. I’m not so sure that this is a lot of new buying I think it’s probably more short covering than anything but at this point we’ll take what we can get
All right great stuff. So right there though, we need to go away we’re gonna pay some bills. We’re gonna come back and talk more with Oliver slope, Blue Line futures in Chicago direct backup this 6737. Right. If you all the way up to April, we’re sharply unchanged. Let’s bring back and Oliver Oliver slope Blue Line futures in Chicago. Oliver. If you take a look at these prices, anything jump out together? Well,
sir, certainly nicely, more green on screen and livestock side to just AGS. In general, just catching a nice little bit. And cattle obviously got some help on a couple of different fronts of fairly friendly cattle on feed report on Friday, you’ve got outside markets that were under pressure for much last week, kind of rallying back in today’s trade. So certainly seeing a little bit of optimism propel prices higher, which is great, because they were at a bit of an inflection point, October live cattle is testing trendline support last week and on the verge of a breakdown. But we managed to defend that. So I think a little bit more upside is probably in the cards. But I’m a little bit concerned that the upside may be limited to 187 188. For that October live cattle contract. That’s the top end of the range. Going back to March. And I know you and I have talked about the potential headline risks and the lingering out there. On top of that you got kind of a seasonal, weaker time a year starting to creep upon us, I can’t believe to say it’s almost August, but that seasonally when we start to see that these cattle markets kind of stall out and maybe give a little bit back,
we’ve got a little we need to see some convergence to between cash and futures. And there’s been a lot of talk about what’s going to be the one to break or rally or whatever there. And we also got to worry about the stock market and the consumer. I mean, so there’s there’s gonna be enough. There’s enough things out there to worry us isn’t there? Yeah,
there certainly is. Yeah. And cash in the futures market, you know, always looking for one to come to the other. I always think they work together. So I wouldn’t be surprised see that converge? But again, I think if we do get that little relief rally on that convergence, I think for people that need downside protection, it’ll be a heck of an opportunity into the end of the year.
I mean, if you can do well at those prices, and you can lock it in I mean why wouldn’t you seeing what happened to him last year at the end of the year and seeing what we’ve seen happen in the grains as of late No, you got to make sure you’ve got some insurance pot there Don’t you think? Absolutely.
Last fall I’ve been having that conversation quite a few times over the last couple of weeks last fall when they had the rug pulled for seemingly no reason at all right risk happens fast so you got to buy puts or protect the downside when you can not when you have to. Alright
great stuff as usual. Thank you very much. Oliver Sloup, Blue Line futures coming to us from Chicago. Good stuff

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