Grainstrading — Trading Ideas on TradingView

Close to A Bottom in December Corn? After scoring a new contract low early in Tuesday’s trade, December corn futures managed to stage a late-session rally to close in positive territory. Moreover, the contract managed to close above trendline resistance that’s been in place dating back to June 20th. Price action on Wednesday served as a continuation of the late-session strength, with the contract closing 6 cents higher to close at 482 ¼ - marking a second consecutive close above trendline resistance. Prices have clung to the trendline very tightly over the last 8 trading sessions, and the previous two sessions are the first instances of prices closing above trendline resistance. So the question now becomes, are we close to a bottom in the December corn contract? Looking at price history and seasonal tendencies, we can see that the December corn contract typically bottoms out between the final week of September and into the first couple of weeks of October, before ultimately staging a moderate rally in late October. www.seasonalgo.com If we are indeed attempting to put in an intermediate bottom, we can expect a support/resistance flip. Meaning, that previous trendline resistance should now act as trendline support. In other words, if prices falter in the coming days, and test the trendline, we should likely see bulls come to defend the trendline. Check out CME Group real-time data plans available on TradingView here: www.tradingview.com Disclaimers: CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com *Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services. 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.

WEAT- Wheat ETF at buy point LONG WEAT the Wheat EFT has been volatile of late due to the Bakc Sea shipping deal falling apart when Russia refused to renew it. Brazil has been trying to increase whet exports to pick up from the fall off of Ukrainian shipments to Africa and others. On the 4H chart, WEAT has fallen 15% from the double tops of July demonstrating the high volatility in what is typically a slow-moving commodity. WEAT is now 5% above the support trendline and about 14% below the horizontal resistance of those double tops. This is a favorable r:R ratio. I will go long here assuming there is now breakthrough in the near future with the resumption of the Black Sea grain deal to impact the supply-demand imbalance and destabilize the price rise. I will look into a call option trade as well.

CORN rises off a pivot LONG CORN, the ETF tracking spot corn and corn futures has ended its down trend on the 15 minute chart. The pivot is not a surprise given the issues related to wheat in the Black Sea shipping with the Ukraine war escalating onto the sea and the grain export deal falling apart. The Price Momentum Oscillator which might be considered a leading indicator is showing bullish divergence.Volatility is steady and without spikes. The bias here is for bullish momentum to more forward with increasing amplitude given the fundamental geopolitical context. I will buy CORN long and may enter a position on the futures markets.