MarketEdge AM Comments

Apr 05, 2023

Good Morning.  Corn and soybean futures were lower overnight.  May corn finished the overnight session off 6 cents, settling at 6.4775.  May soybeans were off 6 cents, settling at 15.1150.  In the outside markets, as of 7:40am:  The US Dollar Index is off 10 points, trading at 101.576.  May crude oil is off 14 cents, trading at $80.57 per barrel.  Precious metals are mixed.  Industrial metals are all lower.  The Electronic Mini-DJIA is off 12 points, trading at 33,565.  Corn and soybean futures followed through from yesterday’s close overnight, trading lower in response to the current forecast for the US Corn Belt that calls for a warmer and drier weather pattern setting in for the rest of the week and into the middle of April.  Hopefully, this forecast will materialize and allow farmers to get after some spring fieldwork.  Meanwhile, the Dakotas received another heavy blanket of snow over the last 24 hours, though temperatures warming should melt much of this in the coming days.  As of now, the Northwestern Corn Belt remains the area of concern to watch in the near-term, however, we are far from needing to create any panic regarding planting pace as it is only April 5th.  The outside markets are giving little direction this morning, with both the US Dollar Index and crude oil futures trading slightly lower.  Other news relating to grains and oilseeds is relatively light this morning.  This is purely a spring weather market.  As with any weather market, things can and do change on a dime with every little twist and turn in the forecast.  Yesterday, the funds sold 5000 contracts of corn, sold 3000 contracts of soybeans, and sold 1000 contracts of wheat.  They are now estimated to be net short 12,440 contracts of corn, net long 110,405 contracts of soybeans, and net short 94,660 contracts of wheat.  From a chart perspective, May corn took out initial support, at 6.50, overnight.  Further support lies at the overnight low, 6.4650, followed by the three-week low charted on March 22nd, 6.2325, and then the eight-month low charted on March 10th, 6.0675.  Initial resistance is at 6.55 and 6.5750, the highs from overnight and yesterday, respectively, followed by the 1 ½ month high charted on Monday, 6.6850.  May soybeans find initial support at 15.0675 and 15.0550, the lows from overnight and yesterday, respectively, followed by the psychological 15.00 level, and then 14.68, Friday’s low.  Initial resistance is at 15.2225 and 15.2375, the highs from overnight and yesterday, respectively, followed by the one-month high charted on Monday, 15.2775.  Opening calls are lower.  Following are 24-hour rainfall totals reported by River Valley Coop employees for their respective Coop locations and/or homes:
Martelle, Jones Co., IA                   0.20”
Calamus, Clinton Co., IA                1.00”
Tipton, Cedar Co., IA                       0.30”
Sunbury, Cedar Co., IA                   0.80”
Have a great Wednesday.

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