MarketEdge AM Comments
Apr 24, 2023
(Phil Knuth)
Good Morning. Corn futures were lower and soybean futures were mixed overnight. May corn finished the overnight session off 5 cents, settling at 6.5825. May soybeans were up 5 ½ cents, settling at 14.89. In the outside markets, as of 7:40am: The US Dollar Index is off 186 points, trading at 101.636. June crude oil is off 29 cents, trading at $77.58 per barrel. Precious metals are mixed. Industrial metals are all lower. The Electronic Mini-DJIA is off 39 points, trading at 33,911. Nearby corn futures dominated trading volume overnight, though there is a general lack of new fundamental news for traders to chew on this morning. Corn futures remain under pressure due to struggling exports and aggressive Brazilian export offers. Soybean futures are also pressured by a struggling export program, cheap Brazilian offers, and a large Brazilian soybean crop that seems to continue to get bigger. Although US Midwest weather is expected to be colder than normal for the next 7-10 days, chances for precipitation are scattered and farmers should be allowed a stretch of weather conducive to fieldwork. Despite soil temperatures that are less than “ideal” for corn planting, with May 1st now only one week away, traders expect that Mr. Farmer will take advantage of the dry weather and plant as much corn as he can in the next week. On Friday, the funds sold 5000 contracts of corn, sold 5000 contracts of soybeans, and sold 3000 contracts of wheat. They are now estimated to be net long 44,700 contracts of corn, net long 123,630 contracts of soybeans, and net short 121,285 contracts of wheat. From a chart perspective, May corn finds initial support at Friday’s low, 6.5650, followed by 6.50, and then 6.4025, the one-month low charted on April 10th. Initial resistance is at the overnight high, 6.6750, followed by 6.8250, the two-month high charted on Tuesday, and then a cluster of resistance from that two-month high on up to 6.86, the 5 ½ month high charted on January 18th. May soybeans find initial support at 14.80, Friday’s low, followed by 14.50, and then the 5 ½ month low charted on March 24th, 14.05. Initial resistance is at 14.9275, the overnight high, followed by the psychological 15.00 mark, and then 15.3150, the 1 ½ month high charted on Tuesday. Opening calls are mixed.
Have a great Monday.
Good Morning. Corn futures were lower and soybean futures were mixed overnight. May corn finished the overnight session off 5 cents, settling at 6.5825. May soybeans were up 5 ½ cents, settling at 14.89. In the outside markets, as of 7:40am: The US Dollar Index is off 186 points, trading at 101.636. June crude oil is off 29 cents, trading at $77.58 per barrel. Precious metals are mixed. Industrial metals are all lower. The Electronic Mini-DJIA is off 39 points, trading at 33,911. Nearby corn futures dominated trading volume overnight, though there is a general lack of new fundamental news for traders to chew on this morning. Corn futures remain under pressure due to struggling exports and aggressive Brazilian export offers. Soybean futures are also pressured by a struggling export program, cheap Brazilian offers, and a large Brazilian soybean crop that seems to continue to get bigger. Although US Midwest weather is expected to be colder than normal for the next 7-10 days, chances for precipitation are scattered and farmers should be allowed a stretch of weather conducive to fieldwork. Despite soil temperatures that are less than “ideal” for corn planting, with May 1st now only one week away, traders expect that Mr. Farmer will take advantage of the dry weather and plant as much corn as he can in the next week. On Friday, the funds sold 5000 contracts of corn, sold 5000 contracts of soybeans, and sold 3000 contracts of wheat. They are now estimated to be net long 44,700 contracts of corn, net long 123,630 contracts of soybeans, and net short 121,285 contracts of wheat. From a chart perspective, May corn finds initial support at Friday’s low, 6.5650, followed by 6.50, and then 6.4025, the one-month low charted on April 10th. Initial resistance is at the overnight high, 6.6750, followed by 6.8250, the two-month high charted on Tuesday, and then a cluster of resistance from that two-month high on up to 6.86, the 5 ½ month high charted on January 18th. May soybeans find initial support at 14.80, Friday’s low, followed by 14.50, and then the 5 ½ month low charted on March 24th, 14.05. Initial resistance is at 14.9275, the overnight high, followed by the psychological 15.00 mark, and then 15.3150, the 1 ½ month high charted on Tuesday. Opening calls are mixed.
Have a great Monday.