Can the Grain Rally Continue?

Corn
Technicals (December)

Corn futures started the month with a bang, getting out above first resistance from 401-403 3/4 which quickly took prices to our 4-star resistance pocket from 409-413. Yesterday’s close at 409 1/4 was the highest since July 25th and puts prices as much as 25 cents off the low from just a week ago. If the Bulls can keep the momentum going and achieve a close above 413, it could open the door for an extension towards our next resistance pocket, 421 3/4-423 3/4. On the flipside, a break and close back below 401-403 3/4 would neutralize the recent Bullish developments.

Short Term Bias and Technical Levels of Importance

• Bias: Bullish/Neutral
• Resistance: 421 3/4-423 3/4*
• Pivot: 409-413
• Support: 401-403 3/4, 380-385***

Below: Daily Chart of December Corn Futures.

Chart of Interest
Yesterday’s weekly Crop Progress report showed good/excellent conditions for the U.S. corn crop at 65%, unchanged from last week. Most analysts were expecting a 1% decline.

Soybeans
Technicals (November)

November soybean futures continued their breakout move above trendline resistance and the 20-day moving average in yesterday’s trade, propelling prices to their highest level in nearly a month. The Bulls will want to continue defending our pivot pocket from 1000-1006 1/2. If the market can continue to find buying interest above yesterday’s high, we could see a beeline to our next resistance pocket from 1031 3/4-1035.

Short Term Bias and Technical Levels of Importance

• Bias: Neutral/Bullish
• Resistance: 1013-1018, 1031 3/4-1035*
• Pivot: 1000-1006 1/2
• Support: 984 3/4-991**, 950-955 1/4

Below: Daily Chart of November Soybean Futures

Chart of Interest
Yesterday’s weekly Crop Progress report showed good/excellent conditions for the U.S. soybean crop at 65%, down 2% from last week. Most analysts were expecting a 1% decline.

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