Grain Markets Continue to Impress

Wheat

Tuesday’s Recap
May Wheat futures settled at a one week high of 540’0 Tuesday, higher by 3’4. Combined volume came in at a one month high of 205,868, with May seeing a heavy 92,716 change hands. Across all maturities, open interest decreased by 9,083, or 1.89%, to end the session with 470,772 outstanding. The May maturity dropped 9.66% (9,083) to finish at 184,495.

Technicals
Wheat is holding in there along with corn and beans. As mentioned earlier in the week, with Funds so aggressively short (for a long time) you would have thought we might see some more deleveraging (short covering) recently. Resistance from 551 1/2-555 will be the pocket to watch. Consecutive closes above here could spark more of that short covering with the next upside objective coming in 15-20 cents higher.

Technical Levels of Importance
Resistance: 551 1/2-555***, 569-570 1/4***, 575 3/4-577 1/2****
Pivot: 530-537
Support: 515-520*

Popular Options
Option trading centered around the May 550 calls with 1,931 done and the May 500 puts with volume of 3,883. Option open interest is greatest for the July 900 calls at 11,443, and the July 550 puts at 9,004.

Volatility Update
Implied Volatility finished moderately lower with WVL dropping by 1.1, to close the session at 31.99. Historical volatility (30-day) ended at 21.81%, down 0.0413%. The WVL Skew was sharply higher with the 30-day adding 0.83, finishing the day at a one week high of 4.88.

Seasonal Tendencies Update
(Updated on 4.7.25)

Below is a look at historical price averages for July wheat futures on a 5, 10, 15, 20, and 30 year time frames (Past performance is not necessarily indicative of future results).

Want to read the full article with charts included? Check out this link: https://bluelinefutures.com/2025/04/09/grain-markets-continue-to-impress/ 

Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. 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.
Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.
With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
Performance Disclaimer
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.