🖐🏻Five Charts In Five Minutes #5
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, join our Telegram channel, 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 🌽
We received confirmation last week that a bull trap was formed when Corn tried to pierce through its downtrend line. During the overnight session yesterday, a similar move happened when the market tried to break the uptrend line established over the last couple months creating a possible bear trap. The trade will decide this week if a bear trap was formed and corn returns to the middle of the range or we break lower with targets set at the first major support of 6.35
🟢Current upside targets: 6.60 and 6.75
🔴Current downside targets: 6.49, 6.44, and 6.35
Wheat Futures 🌾
Wheat broke our support levels last week and appears to have broken our first major support level of 7.38 last night. The market is now within striking distance of the next support of 7.23 and we believe it is more than likely going to be met. Be on the look out for bulls finally throwing in the towel on their long positions now that we are at the bottom end of the range.
🟢Current upside targets: 7.58 and 7.63
🔴Current downside targets: 7.23 and 6.93
The soybean market has been exhibiting wild swings the past several weeks, smashing through both our upside targets and downside targets back to back. We are convinced that both bulls and bears will have a harder time navigating this market as the technicals are not so obvious and a sudden change in South American weather can literally turn this contract on a dime.
🟢Current upside targets: 15.00
🔴Current downside targets: 14.64 and 14.50
Soybean Oil Futures 🌱🛢️
Soybean oil continues to be a very technically driven market based on the price action the past several weeks. This week is no different. Soybean oil is now caught between two trendlines and the market is coming to a crossroad where a decision will need to be made. The best trade now is to sit patiently and watch for a violation of the upside or downside and be ready to trade the next technical setup.
🟢Current upside targets: 65 and 67
🔴Current downside targets: 62 and 61.50
Soybean Meal Futures🌱🐮
Soybean meal continues to be the most bullish of all of the agricultural futures. This is also confirmed by the funds who have established a *record* net long position in the contract not seen since 2018. It may be some time before this story falls apart, but for now, respect the price action in soybean meal and how it is holding together the grains complex.
🟢Current upside target is 480 and 495
🔴Current downside target is 456
The grain markets have had a wild run the past several weeks, taking out both our high side targets and low side targets. In continuation of this trend, the markets continue to indicate a major reshuffling of risk across the grain and oilseeds futures complex as we near the major USDA report day of 1/12. Be on the lookout for technical levels to be violated with the overshadowing theme that everything can turn on a dime once the reports are released.
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