Grains sector - a swing traders perspective

Wheat - Single stalk of wheat on white background

Here is our take on the 5 major grains elements measured off the hourly charts. Take a few minutes to review this analysis as you go about your restful weekend:

  • Soybeans: Long term support is between 1159:50~1180.25 for the July contract so this may reset at the time of roll. Longer term price target likely using forward facing expirations is 1286. Chart:
  • Meal: Longer term support is between 346.6~355.5. Price target 400. Chart:
  • Corn: Has support between 436.75~450.75 - so we are at the upper support price point. This is clearly a long trade after the recent consolidation off the 475.5 high made last week. Expect 487~488 as immediate profit targets. Chart:
  • Bean Oil: Oversold in the recent session but throwing in a recent bid past the most recent WASDE report. Use 43.16 area as support and price target of 47.75 using front month expiration contracts. Chart:
  • Chicago Wheat: Support is from 594~631.50 targeting 728. Similar to Corn and despite supply situation and last weeks consolidation, that price target looks good for front facing futures contract expirations. Chart:
  • Oats: Amazing pullback after the 433.50 peak made in early May. We could drop some ore to the 350 area but from that region we have strong support targeting 458.50~517, again using front period expirations. Chart:

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On the date of publication, Murali Sarma did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.