Fundamentals: November soybeans were able to grind higher yesterday on what was mostly relief after selling off so hard in the first half of the week. As with corn, there were rumors that China may have been in the market during that pullback, that has yet to be confirmed. South America has seen beneficial rains develop, which could keep a lid on the market, especially if we do not see better export news. The Bull needs to be fed. Yesterdayâ€™s export sales report showed net sales of 406,900 MT for 2020/2021–a marketing-year low–were down 47 percent from the previous week and 68 percent from the prior 4-week average.
Technicals: As mentioned in the corn section, our bias is Neutral this morning, not because there isnâ€™t trading opportunity, but because we think we will see wider intraday trading ranges and more day to day gyrations, presenting short term opportunities for traders on both sides of the market. The market is attempting a run at technical resistance, 1175-1176, we would look to be sellers against this pocket, with a tight leash. A break above and we would take our small dose of medicine and regroup.
Previous Session Bias: Neutral
Resistance: 1175-1176***, 1200-1208 Â½**
Pivot: 1152-1154 Â¾
Support: 1138-1142 Â½**, 1114 Â¼-1120 Â¼****
Chicago Wheat (March)
Technicals: As mentioned in yesterdayâ€™s report â€œWe did start putting on some short positions with clients yesterday afternoon (Wednesday), near 590. But we want to be ready, willing, and able to be more aggressive in our pivot pocket, 596 Â¾-599 Â¼.â€ Unfortunately, we were not able to get that secondary push to get more aggressive. Though the chart remains vulnerable, shorts may consider locking in a quick gain ahead of the weekend. Support comes in from 574-574 Â¾. If you are Bullish, this is a decent risk/reward setup for you. We are near term neutral but remain bearish over the intermediate term.
Previous Session Bias: Neutral/Bearish
Resistance: 608 Â¾-611 Â¾****, 619 Â½-621***
Pivot: 596 Â¾-599 Â¼
Support: 574-574 Â¾**, 563-569 Â½****
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