MarketEdge AM Comments
Aug 10, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were higher overnight. September corn finished the overnight session up 2 cents, settling at 4.83. November soybeans were up 9 cents, settling at 13.1750. In the outside markets, as of 7:45am: The US Dollar Index is off 620 points, trading at 101.866. September crude oil is off 53 cents, trading at $83.87 per barrel. Precious metals are all higher. Industrial metals are mixed. The Electronic Mini-DJIA is up 209 points, trading at 35,411. Trading volume was thin again overnight as traders await the highly anticipated August WASDE Report tomorrow morning. A sharply lower US Dollar Index and a mostly friendly weekly Export Sales Report released at 7:30am helped to support futures overnight. Aside from the aforementioned, the crickets can be heard chirping on the Chicago Board of Trade trading floor. Old crop soybean sales bookings and new crop corn sales bookings exceeded traders’ expectations on this morning’s Export Sales Report. Last week, 150,400MT of corn was booked for sale for the current marketing year. This figure is on the bottom end of the range of trade estimates, is 40% higher than the previous week’s sales, and is 47% lower than the prior four-week average. For the 2023/24 marketing year, 758,400MT of corn was booked for sale last week. This figure is over 150,000MT higher than the highest trade estimate. Last week’s corn export shipments totaled 478,400MT. This figure is 24% lower than the previous week’s shipments and is even with the prior four-week average. Primary destinations were Mexico, Japan, Saudi Arabia, Canada, and Taiwan. Last week, 406,600MT of soybeans were booked for sale for the current marketing year. This figure is over 100,000MT higher than the highest trade estimate and is up noticeably from both the previous week’s sales and the prior four-week average. For the 2023/24 marketing year, 1,096,400MT of soybeans were booked for sale last week. This figure is on the upper end of the range of trade expectations. Last week’s soybean export shipments totaled 381,200MT. This figure is 32% higher than the previous week’s shipments and is 40% higher than the prior four-week average. Primary destinations were Germany, Indonesia, the Netherlands, Mexico, and Japan. Yesterday, the funds sold 4000 contracts of corn, were net even on soybeans, and sold 6000 contracts of wheat. They are now estimated to be net short 325 contracts of corn, net long 77,315 contracts of soybeans, and net short 71,020 contracts of wheat. From a chart perspective, September corn finds initial support at the overnight low, 4.80, followed by the one-month low charted on Monday, 4.76, and then the double-low charted on July 12th and 13th that is also a two-year contract low, 4.74. Initial resistance is at 4.90, yesterday’s high, followed by Friday’s high, 4.9350, and then the psychological 5.00 mark. November soybeans find initial support at the overnight low, 13.05, followed by the psychological 13.00 level, and then the 1 ½ month low charted on Tuesday, 12.8225. Initial resistance is at 13.23, yesterday’s high, followed by 13.50, and then the July 31st chart gap, 13.7550-13.79. Opening calls are higher.
Have a great Thursday.
Good Morning. Corn and soybean futures were higher overnight. September corn finished the overnight session up 2 cents, settling at 4.83. November soybeans were up 9 cents, settling at 13.1750. In the outside markets, as of 7:45am: The US Dollar Index is off 620 points, trading at 101.866. September crude oil is off 53 cents, trading at $83.87 per barrel. Precious metals are all higher. Industrial metals are mixed. The Electronic Mini-DJIA is up 209 points, trading at 35,411. Trading volume was thin again overnight as traders await the highly anticipated August WASDE Report tomorrow morning. A sharply lower US Dollar Index and a mostly friendly weekly Export Sales Report released at 7:30am helped to support futures overnight. Aside from the aforementioned, the crickets can be heard chirping on the Chicago Board of Trade trading floor. Old crop soybean sales bookings and new crop corn sales bookings exceeded traders’ expectations on this morning’s Export Sales Report. Last week, 150,400MT of corn was booked for sale for the current marketing year. This figure is on the bottom end of the range of trade estimates, is 40% higher than the previous week’s sales, and is 47% lower than the prior four-week average. For the 2023/24 marketing year, 758,400MT of corn was booked for sale last week. This figure is over 150,000MT higher than the highest trade estimate. Last week’s corn export shipments totaled 478,400MT. This figure is 24% lower than the previous week’s shipments and is even with the prior four-week average. Primary destinations were Mexico, Japan, Saudi Arabia, Canada, and Taiwan. Last week, 406,600MT of soybeans were booked for sale for the current marketing year. This figure is over 100,000MT higher than the highest trade estimate and is up noticeably from both the previous week’s sales and the prior four-week average. For the 2023/24 marketing year, 1,096,400MT of soybeans were booked for sale last week. This figure is on the upper end of the range of trade expectations. Last week’s soybean export shipments totaled 381,200MT. This figure is 32% higher than the previous week’s shipments and is 40% higher than the prior four-week average. Primary destinations were Germany, Indonesia, the Netherlands, Mexico, and Japan. Yesterday, the funds sold 4000 contracts of corn, were net even on soybeans, and sold 6000 contracts of wheat. They are now estimated to be net short 325 contracts of corn, net long 77,315 contracts of soybeans, and net short 71,020 contracts of wheat. From a chart perspective, September corn finds initial support at the overnight low, 4.80, followed by the one-month low charted on Monday, 4.76, and then the double-low charted on July 12th and 13th that is also a two-year contract low, 4.74. Initial resistance is at 4.90, yesterday’s high, followed by Friday’s high, 4.9350, and then the psychological 5.00 mark. November soybeans find initial support at the overnight low, 13.05, followed by the psychological 13.00 level, and then the 1 ½ month low charted on Tuesday, 12.8225. Initial resistance is at 13.23, yesterday’s high, followed by 13.50, and then the July 31st chart gap, 13.7550-13.79. Opening calls are higher.
Have a great Thursday.