Corn Futures Recover Friday's Losses Corn
Commitments of Traders Update: Friday’s CoT report showed Managed Money were net sellers of 25,871 futures/options contracts through July 19th. 24,916 of this was long liquidation, just 955 were new short positions. This shrinks their net long position to 125,303 contracts. Broken down that is 202,400 longs VS 77,097 shorts.
Fundamentals: Corn futures had another rough week, with the December contract losing 39 ½ cents. Cooler and wetter forecasts working their way into 1-2 week forecast didn’t offer any support. Russia and Ukraine signed a deal on Friday that would open up Ukrainian ports. There were skeptics out of the gate and now even more as Russia bombed Odessa Saturday morning. The strike didn’t appear to have damaged any grain storage, but it certainly doesn’t help build confidence that the agreement will stand.
Technicals (September): Corn futures are rebounding this morning, erasing the losses from Friday’s session. Friday morning, we moved our bias from outright Neutral to Neutral/Bullish, aka cautiously optimistic. The Bulls want to see a conviction close out above our pivot pocket, 574 ¼-579 ¼, to help encourage additional upward momentum towards our resistance pocket, 586-589.
Bias: Neutral/Bullish
Previous Session Bias: Neutral/Bullish
Resistance: 586-589****, 624-630***, 645-652 ½***
Pivot: 574 ¼-579 ¼
Support: 542 ¼-547 ¾***
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.