MarketEdge AM Comments
Dec 04, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were lower overnight. March corn finished the overnight session off a penny and a quarter, settling at 4.8350. January soybeans were off 3 ½ cents, settling at 13.2150. In the outside markets, as of 7:45am: The US Dollar Index is up 60 points, trading at 103.332. January crude oil is off 40 cents, trading at $73.67 per barrel. Precious metals are lower, except platinum. Industrial metals are higher, except copper. The Electronic Mini-DJIA is off 123 points, trading at 36,180. Soybean futures gapped lower overnight, pressured by an improving Brazilian weather forecast. Over the weekend, Brazil and Argentina both experienced widespread rainfall. In the extended forecast, weather conditions in the key crop producing state of Mato Grosso (Central/Western Brazil) are expected to improve with better chances of regular precipitation. Meanwhile, Southern Brazil, although still too wet, made significant planting progress last week. The state of Rio Grande do Sul planted 27% of its soybean crop last week. Planting pace remains well behind the five-year average, however, progress is progress and this development was not ignored in Chicago. Corn futures more or less followed along overnight, pressured by lower soybean futures. There is a general lack of fresh fundamental news this morning regarding corn. On Friday, the funds bought 1000 contracts of corn, sold 6000 contracts of soybeans, and bought 2000 contracts of wheat. They are now estimated to be net short 207,020 contracts of corn, net long 63,150 contracts of soybeans, and net short 114,070 contracts of wheat. From a chart perspective, March corn finds initial support at the overnight low, 4.8125, followed by the contract low charted on Wednesday, 4.7050. Initial resistance is at 4.8950, Friday’s high, followed by 4.9325, the double-high charted on November 21st and 22nd, and then 4.9650, the one-month high charted on November 15th. January soybeans find initial support at the one-month low charted overnight, 13.1125, followed by the psychological 13.00 mark, and then 12.9750, the 1 ½ month low charted on October 25th. Initial resistance is at the chart gap created overnight, 13.2275-13.2350, followed by 13.52, last week’s high charted on Wednesday. Opening calls are lower.
Have a great Monday.
Good Morning. Corn and soybean futures were lower overnight. March corn finished the overnight session off a penny and a quarter, settling at 4.8350. January soybeans were off 3 ½ cents, settling at 13.2150. In the outside markets, as of 7:45am: The US Dollar Index is up 60 points, trading at 103.332. January crude oil is off 40 cents, trading at $73.67 per barrel. Precious metals are lower, except platinum. Industrial metals are higher, except copper. The Electronic Mini-DJIA is off 123 points, trading at 36,180. Soybean futures gapped lower overnight, pressured by an improving Brazilian weather forecast. Over the weekend, Brazil and Argentina both experienced widespread rainfall. In the extended forecast, weather conditions in the key crop producing state of Mato Grosso (Central/Western Brazil) are expected to improve with better chances of regular precipitation. Meanwhile, Southern Brazil, although still too wet, made significant planting progress last week. The state of Rio Grande do Sul planted 27% of its soybean crop last week. Planting pace remains well behind the five-year average, however, progress is progress and this development was not ignored in Chicago. Corn futures more or less followed along overnight, pressured by lower soybean futures. There is a general lack of fresh fundamental news this morning regarding corn. On Friday, the funds bought 1000 contracts of corn, sold 6000 contracts of soybeans, and bought 2000 contracts of wheat. They are now estimated to be net short 207,020 contracts of corn, net long 63,150 contracts of soybeans, and net short 114,070 contracts of wheat. From a chart perspective, March corn finds initial support at the overnight low, 4.8125, followed by the contract low charted on Wednesday, 4.7050. Initial resistance is at 4.8950, Friday’s high, followed by 4.9325, the double-high charted on November 21st and 22nd, and then 4.9650, the one-month high charted on November 15th. January soybeans find initial support at the one-month low charted overnight, 13.1125, followed by the psychological 13.00 mark, and then 12.9750, the 1 ½ month low charted on October 25th. Initial resistance is at the chart gap created overnight, 13.2275-13.2350, followed by 13.52, last week’s high charted on Wednesday. Opening calls are lower.
Have a great Monday.