MarketEdge AM Comments
Dec 06, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were higher overnight. March corn finished the overnight session up a penny and a quarter, settling at 4.9175. January soybeans were up 2 cents, settling at 13.0750. In the outside markets, as of 7:40am: The US Dollar Index is off 60 points, trading at 103.986. January crude oil is off 60 cents, trading at $71.72 per barrel. Precious metals are all higher. Industrial metals are lower, except copper. The Electronic Mini-DJIA is up 56 points, trading at 36,245. Corn and soybean futures were well supported yesterday and overnight, riding on the coat-tails of recovering wheat and soybean meal futures. After charting one-plus month lows on Monday, soybean meal futures have reversed course and are now trending higher. Likewise, after charting new contract lows early last week, wheat futures have been in an upward trajectory and charted new three-month highs overnight. Corn export sales reported to “unknown destinations” (most likely China) on Thursday and solid corn export inspections reported on Monday are also contributing to the strength in corn futures. On Monday, USDA reported weekly corn export inspections of 1.158MMT. This figure was a nearly 750,000MT increase week-over-week and was over 250,000MT higher than the highest trade estimate. It appears as if the Brazilian corn export season is drawing to a close and global demand is finally going through its seasonal shift to the United States. Yesterday, the funds bought 2000 contracts of corn, bought 1000 contracts of soybeans, and bought 3000 contracts of wheat. They are now estimated to be net short 205,020 contracts of corn, net long 58,150 contracts of soybeans, and net short 106,070 contracts of wheat. From a chart perspective, March corn faces initial resistance at the overnight high, 4.9275, which is also the 40-day moving average and a two-week high, followed immediately by the double-high charted on November 21st and 22nd, 4.9325, and then 4.9650, the one-plus month high charted on November 15th. Initial support lies at 4.8925, the overnight low, followed by 4.7050, the contract low charted one week ago. January soybeans face initial resistance at 13.1525, yesterday’s high, followed by 13.52, last week’s high charted one week ago. Initial support lies at the psychological 13.00 mark, followed by 12.94, the nearly two-month low charted yesterday. Opening calls are higher.
Have a great Wednesday.
Good Morning. Corn and soybean futures were higher overnight. March corn finished the overnight session up a penny and a quarter, settling at 4.9175. January soybeans were up 2 cents, settling at 13.0750. In the outside markets, as of 7:40am: The US Dollar Index is off 60 points, trading at 103.986. January crude oil is off 60 cents, trading at $71.72 per barrel. Precious metals are all higher. Industrial metals are lower, except copper. The Electronic Mini-DJIA is up 56 points, trading at 36,245. Corn and soybean futures were well supported yesterday and overnight, riding on the coat-tails of recovering wheat and soybean meal futures. After charting one-plus month lows on Monday, soybean meal futures have reversed course and are now trending higher. Likewise, after charting new contract lows early last week, wheat futures have been in an upward trajectory and charted new three-month highs overnight. Corn export sales reported to “unknown destinations” (most likely China) on Thursday and solid corn export inspections reported on Monday are also contributing to the strength in corn futures. On Monday, USDA reported weekly corn export inspections of 1.158MMT. This figure was a nearly 750,000MT increase week-over-week and was over 250,000MT higher than the highest trade estimate. It appears as if the Brazilian corn export season is drawing to a close and global demand is finally going through its seasonal shift to the United States. Yesterday, the funds bought 2000 contracts of corn, bought 1000 contracts of soybeans, and bought 3000 contracts of wheat. They are now estimated to be net short 205,020 contracts of corn, net long 58,150 contracts of soybeans, and net short 106,070 contracts of wheat. From a chart perspective, March corn faces initial resistance at the overnight high, 4.9275, which is also the 40-day moving average and a two-week high, followed immediately by the double-high charted on November 21st and 22nd, 4.9325, and then 4.9650, the one-plus month high charted on November 15th. Initial support lies at 4.8925, the overnight low, followed by 4.7050, the contract low charted one week ago. January soybeans face initial resistance at 13.1525, yesterday’s high, followed by 13.52, last week’s high charted one week ago. Initial support lies at the psychological 13.00 mark, followed by 12.94, the nearly two-month low charted yesterday. Opening calls are higher.
Have a great Wednesday.