🖐🏻Five Charts In Five Minutes #2
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 mailing list or watch for our Twitter updates for latest posts. Feel free to manage your subscriber preferences at the bottom of the e-mail to fine tune the e-mails that you wish to receive.
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Corn Futures 🌽
Corn is sending mixed signals to the market. After failing to break out last week and failing to establish a new trend, corn is officially too choppy to trade in the short run. It's best to avoid the chop and focus on the medium trend, either hitting the previous support level at 6.35 or breaking above 6.60 and trapping short sellers.
🟢Current upside target is 6.60, opening the door to 6.74
🔴Current downside target is 6.35
⚠️Mind the gap below 5.95
Wheat Futures 🌾
Wheat does not spare the rod teaching speculators not to trade it. At the moment all fundamental bullish developments do not seem to help the price. Be careful playing the long side with tight stops and a big stop at the recent low @ 7.23
🟢Current upside target is 7.69 and 8.00
🔴Current downside target is 7.32 and 7.23
Soybeans continue to be stuck in between two trendlines. Down days are attributed to rains in South America. Up days are attributed to the lack of them. A big inflection point is coming up in the soybean market.
🟢Current upside target is 14.92
🔴Current downside target is 14.58, 14.54, and 14.25
⚠️Mind the gap above 15.36
Soybean Oil Futures 🌱🛢️
Soybean oil is starting to look a bit more constructive. The panic selling after the EPA biofuels decision is over with and the chart is potentially setting itself up for squeeze upward if 64.80 is broken. Bulls want the gap to close, bears want to inflict more pain on the longs. Fortune favors the bulls as we head into expiry.
🟢Current upside target is 64.81 and 67.33
🔴Current downside target is 62.17 and 60
⚠️Mind the gap at 67
Soybean Meal Futures🌱🐮
Soybean meal has taken out the stops we mentioned last week @ 447-448. We believe that a major decision, up or down, is about to be made in the Soybean complex. New trendlines lower and higher are confirming a a potential breakout higher or lower.
🟢Current upside target is 460 and 468
🔴Current downside target is 446 and 424
Grain and oilseed futures are becoming victim to the holiday trade. False breakouts, stop hunting, and big players are taking liquidity out of the market. A word of caution is noted for Corn and Wheat to the downside at the moment while the Soybean complex holds up the market. The fundamental driver in the background still is South American crop production issues and that should be watched daily to get a feel for this market. Good luck out there!
Charts were made using TradingView.
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