MarketEdge AM Comments
Aug 07, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were lower overnight to start the week. September corn finished the overnight session off a penny and a quarter, settling at 4.83. November soybeans were off 30 cents, settling at 13.0325. In the outside markets, as of 7:45am: The US Dollar Index is up 180 points, trading at 102.201. September crude oil is off 92 cents, trading at $81.90 per barrel. Precious metals are lower, except palladium. Industrial metals are mixed. The Electronic Mini-DJIA is up 71 points, trading at 35,224. Corn and soybean futures shrugged off escalating conflict in the Black Sea Region overnight in favor of trading weather. Over the weekend, Ukraine executed drone attacks on Russian oil tankers and threatened Russia that, as of August 23rd, Russian ports along the Black Sea will be considered a part of the “war zone.” Russia retaliated with missile and drone attacks yesterday. Wheat futures were higher overnight as a result of all of this, however, traders chose to largely ignore the Ukraine situation when it comes to corn and soybeans. Weekend rainfall was widespread across the Corn Belt and the forecast for the rest of the month of August continues to be next-to-ideal for crop development. As far as Chicago is concerned, given the current forecast, the 2023 US corn and soybean crops are only getting bigger from here on out. On Friday, the funds bought 3000 contracts of corn, bought 5000 contracts of soybeans, and bought 3000 contracts of wheat. They are now estimated to be net long 3675 contracts of corn, net long 85,315 contracts of soybeans, and net short 70,020. From a chart perspective, September corn finds initial support at the double-low from Thursday and Friday, 4.8025, followed by the double-low charted on July 12th and 13th that is also a two-year contract low, 4.74. Initial resistance is at Friday’s high, 4.9350, followed by the psychological 5.00 mark, and then the chart gap from last Sunday night, 5.1625-5.1675. November soybeans find initial support at the psychological 13.00 level, followed immediately by the overnight low, 12.99, and then 12.5675, the June 28th low. Initial resistance is at 13.27, the overnight high, followed by 13.50, and then the chart gap from last Sunday night, 13.7550-13.79. Opening calls are lower. Following are weekend rainfall totals reported by River Valley Coop employees for their respective Coop locations and/or homes:
Good Morning. Corn and soybean futures were lower overnight to start the week. September corn finished the overnight session off a penny and a quarter, settling at 4.83. November soybeans were off 30 cents, settling at 13.0325. In the outside markets, as of 7:45am: The US Dollar Index is up 180 points, trading at 102.201. September crude oil is off 92 cents, trading at $81.90 per barrel. Precious metals are lower, except palladium. Industrial metals are mixed. The Electronic Mini-DJIA is up 71 points, trading at 35,224. Corn and soybean futures shrugged off escalating conflict in the Black Sea Region overnight in favor of trading weather. Over the weekend, Ukraine executed drone attacks on Russian oil tankers and threatened Russia that, as of August 23rd, Russian ports along the Black Sea will be considered a part of the “war zone.” Russia retaliated with missile and drone attacks yesterday. Wheat futures were higher overnight as a result of all of this, however, traders chose to largely ignore the Ukraine situation when it comes to corn and soybeans. Weekend rainfall was widespread across the Corn Belt and the forecast for the rest of the month of August continues to be next-to-ideal for crop development. As far as Chicago is concerned, given the current forecast, the 2023 US corn and soybean crops are only getting bigger from here on out. On Friday, the funds bought 3000 contracts of corn, bought 5000 contracts of soybeans, and bought 3000 contracts of wheat. They are now estimated to be net long 3675 contracts of corn, net long 85,315 contracts of soybeans, and net short 70,020. From a chart perspective, September corn finds initial support at the double-low from Thursday and Friday, 4.8025, followed by the double-low charted on July 12th and 13th that is also a two-year contract low, 4.74. Initial resistance is at Friday’s high, 4.9350, followed by the psychological 5.00 mark, and then the chart gap from last Sunday night, 5.1625-5.1675. November soybeans find initial support at the psychological 13.00 level, followed immediately by the overnight low, 12.99, and then 12.5675, the June 28th low. Initial resistance is at 13.27, the overnight high, followed by 13.50, and then the chart gap from last Sunday night, 13.7550-13.79. Opening calls are lower. Following are weekend rainfall totals reported by River Valley Coop employees for their respective Coop locations and/or homes:
| CITY | COUNTY | STATE | RAIN TOTAL |
| MARTELLE | JONES | IA | 0.30 |
| OLIN | JONES | IA | 0.50 |
| DEWITT | CLINTON | IA | 0.40 |
| DEER GROVE | WHITESIDE | IL | 0.70 |
| WALNUT | BUREAU | IL | 0.60 |
| MANLIUS | BUREAU | IL | 0.50 |
| PRINCETON | BUREAU | IL | 0.80 |
| WYANET | BUREAU | IL | 0.90 |
| NEPONSET | BUREAU | IL | 1.40 |
| OSCEOLA | STARK | IL | 1.70 |
| CAMBRIDGE | HENRY | IL | 0.20 |
| GENESEO | HENRY | IL | 0.70 |
| OSCO | HENRY | IL | 1.30 |
| BISHOP HILL | HENRY | IL | 4.10 |
| HOOPPOLE | HENRY | IL | 0.20 |
| KASBEER | BUREAU | IL | 0.50 |
| TISKILWA | BUREAU | IL | 0.80 |
| THOMAS | BUREAU | IL | 0.60 |