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🖐🏻Five Charts In Five Minutes #13
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 bottomed out last week after breaking significant support at 6.37, trading as low as 6.22. That low is now marked as support and a defined high to low range has appeared between the bull and bear trendlines. While in this range for the near term, traders should start preparing themselves to shift from trading South American weather and production issues to focusing on potential production issues in the Northern Hemisphere.
🟢Current upside target: 6.50
🔴Current downside targets: 6.31 and 6.25
Wheat Futures 🌾
Wheat is the only futures contract in the grain complex that has not bottomed out, but will whenever it is done destroying the last of the bulls’ bank accounts. Until that occurs, watch the last support level on the chart and hope we don’t hit it before a turn around occurs in the market.
🟢Current upside targets: 7.11, 7.22, 7.25
🔴Current downside targets: 6.83
Soybeans completely bottomed out at the target level we published (14.77) and retraced almost the entirety of selling last week and the week before. The market now has a very well defined range with significant support and resistance to accompany it (14.79 - 15.45). While we trade in this range, be on the lookout for the narrative to shift from South American production to Northern Hemisphere production issues over the next 30-45 days.
🟢Current upside targets: 15.38, 15.45
🔴Current downside targets: 15.12, 14.90, 14.77
Soybean Oil Futures 🌱🛢️
Soybean oil appears to be posting higher lows and lower highs, eventually leading up to a trend line breaking. Until that happens, trade the range and be careful establishing positions at the fringes.
🟢Current upside targets: 62.10, 63.00
🔴Current downside targets: 60.00, 59.90, 59.00, 58.75
Soybean Meal Futures🌱🐮
Ever try submerging a beach ball underwater for long? That is exactly how to explain Soybean Meal futures. This market will not stay down for long, no matter how hard participants try. With that being said, it appears Soybean Meal is trying to gear itself up to hit the previously established high of 508 on the March contract. We have no opinion if it will hit that high, but we will comment that the technicals are appearing again and should be paid attention to.
🟢Current upside targets: 508
🔴Current downside targets: 480, 471, 465
Last week the theme of the market was liquidations and the bottoming out of prices. That definitely occurred for most commodities (except Wheat). With that awful week behind us, we can celebrate that the worst may be over in the short run. It appears now that the market is setting itself up for a range bound trade for the next several weeks. We note that over the next 30-45 days, the narrative is likely to shift from South American production issues to Northern Hemisphere production issues as farmers begin their spring planting. Weather will be key during this period and we advise our subscribers to follow us on Twitter where we will be posting weather updates, courtesy of our affiliate Marcus Weather.
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