Report on the overnight market:
The CME grains closed as per below:
Soybean Oil Future 54.60
Soybean Futures 1367.40
Wheat Futures 630.80
Corn Futures 620.20
The 4 CME Grains product that we are tracking mainly the Soybean Oil, Soybean, Wheat and Corn Futures closed lower in night trading.
Only Soybean Futures have recovered a major portion of its down move and is now trading at the levels of yesterday afternoon 1375 area. Soybean Oil Futures are following behind and have recovered about half of its down move and trading at 54.77 now.
Wheat and Corn are still trading near the low range of last nights cash close.
All of these will cause our FCPO to gap down again at opening.
During yesterday's trade, we were not able to trade higher than Tuesday's high of 3497. Seems like there are some selling interest in this 97-94 area from the charts combined with the downward pull of the 4 CME grains might have a depressing effect on the price of the FCPO contracts.
The general trend is still up for me and I think this is just a pullback from an upswing. Levels of support could be found at the area of 3467, 3436 and 3418 level.
I am encouraged with the recovery of the Soybean Futures, but am worried with the performance of the other contracts.
Best to wait for the price action to unfold before taking new position. We might go back to test the support levels before a continuation of this up trend. How I would scalp this is to identify the areas of consolidation and trade the break outs in either direction and taking cue from the performance of the 4 CME grains that we are tracking in Globex trading.
I will update again on any significant move in the other grains product.
Trade safe all.
Besr Regards,
Tech Trader
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