🖐🏻Five Charts In Five Minutes #10
High level technical analysis of the most popular grain and oilseed futures contracts.
At least once a week we go over light technical analysis of grain and oilseed futures contracts. Subscribe to our newsletter, join our Telegram channel, or watch for our Twitter updates for latest posts. Feel free to manage your subscriber preferences at the bottom of this e-mail to fine tune which topics you wish to be subscribed to.
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Corn Futures 🌽
Corn appears to have broken its down trend line and successfully managed to settle above it. This has prompted the bulls in the room to celebrate that there *might* be another leg up in the Corn market before march futures expiration. Be on the lookout for bulls to continue controlling the narrative in the market with the last line of resistance at 6.89. After 6.89, there is a pocket of open air that could easily push us to the psychological level of 7.00.
🟢Current upside targets: 6.89 and 7.00
🔴Current downside targets: 6.77 and 6.70
Wheat Futures 🌾
Everyday that passes we are becoming more convinced that the wheat market has finally “bottomed out”. Even the local down trend line established since October 2022 has now broken to the upside late last week. We now expect a wide range of prices that wheat futures can trade while respecting both significant support (7.12) as well as significant resistance (8.00). Pay attention to the price action at the top end of the range (8.00) as funds could either double down on their short position or begin a short covering rally.
🟢Current upside targets: 8.00 and 8.20
🔴Current downside targets: 7.55 and 7.45
We continue to be “hands off” from a technical point of view when it comes to Soybean Futures as they and Soybean Meal futures do not have many interesting technical setups to mention. Our only recommendation is to respect the trend and realize that we are within striking distance of the March contract high of 15.72
🟢Current upside targets: 15.72
🔴Current downside targets: 15.23
Soybean Oil Futures 🌱🛢️
Soybean oil continues to print the same descending triangle pattern we have been noticing for the past two weeks, which does not paint a bullish ending to the future price. We advise traders to pay close attention if we trade toward the lower end of the range and especially if we are within striking distance of the major support of 58.50
🟢Current upside targets: 61.00
🔴Current downside targets: 58.80 and 58.50
Soybean Meal Futures 🌱🐮
Like Soybean futures, we will abstain from technical commentary of Soybean Meal as the technical setups viewed from a daily point of view are less than obvious. However, If you are a technical trader and focusing on hourly charts, there are quite a few interesting setups which we will not comment on as they would require us to write a daily wire - something we will not do for *free*. Instead we will point out that the Soybean Meal futures market is trading at a 9-year high and to be patient for when there is a break in this parabolic trend as risk management will be key to the downside.
🟢Current upside targets: 509
🔴Current downside targets: 490 and 477
Markets are green and everyone is happy? Wrong. It is becoming very clear that market participants are not fans of this rally judging by social media. This has opened up questions to who is short and to what capacity. Unfortunately, for attentive observers of the market, we really don’t know. For the past two weeks we have not been able to rely on the Commodity Futures Trading Commission (CFTC) data regarding what market players are doing due to a ransomware attack on a third party service provider.👇🏻
The CFTC and European exchanges will eventually start reporting positions again once they are satisfied with the accuracy of the data. Until then, the price is the price and it’s helping uncover who is short this market.
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