This is a sample entry from Tom Dosdall’s newsletter, Technical Ag Knowledge, published on Friday, March 24, 2017.
We’ve been pointing out how soybeans have been the only market of the “big three” grains still holding a hefty net long position by the funds and it looks like that may finally be correcting before next Friday’s Prospective Planting report.
There is little fresh fundamental news in the market today other than early corn planting delays in the Delta region (acres which have the potential to go to soybeans). We’ve known about the growing South American crop for some time now. The bigger story today, in my opinion, is position squaring and technical selling by some of the big money.
Old support becomes new resistance level at 997’0 on the May contract. 950’0 could be the next bear target. New crop (Nov) has yet to decisively break out but is very close. A close below 980’0 would be below the blue support line as well as the 200 day moving average. If this occurs I think a 952’0 target is next in play.
Congrats to those who took action when we were at the 2-Year highs around 1030’0. If you cashed out on the move down to support, you may want to now consider a re-entry on a close below that support line. Otherwise, continue to hold original hedges!
Try Technical Ag Knowledge for 60 Days
Technical Ag Knowledge Trial - Whether you’re a producer, end user, or trader in the agricultural commodity markets, “Technical Ag Knowledge” will provide you with a crucial awareness of key technical price levels each week so you can manage your positions with conviction and confidence.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.