MarketEdge AM Comments
Jun 01, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were higher overnight. July corn finished the overnight session up 9 ¾ cents, settling at 6.0375. July soybeans were up 22 ¼ cents, settling at 13.22. In the outside markets, as of 7:40am: The US Dollar Index is off 139 points, trading at 104.187. July crude oil is up 4 cents, trading at $68.13 per barrel. Precious metals are lower, except platinum. Industrial metals are mixed. The Electronic Mini-DJIA is off 46 points, trading at 32,933. Corn and soybean futures managed to finish yesterday’s trading session well above the lows charted for the day. That optimism continued overnight, with technical buying, the outside markets, and weather concerns lending plenty of support to futures. After soybean futures charted new multi-month lows yesterday, it is not entirely surprising that soybean and corn futures were due for a bit of a bounce from a technical perspective. The outside markets are not nearly as ugly this morning as they were 24 hours ago. The US Dollar Index has backed off of yesterday’s highs, allowing for crude oil futures and most commodities to recover a bit. The weather forecast for the Corn Belt continues to be the main focus in Chicago. Despite some scattered rainfall in the last 24 hours, much of the Belt remains dry and could really use a drink. This morning, the 11-15 day forecast for the heart of the Corn Belt is a tad drier than it was yesterday. Scattered rainfall is forecasted in the coming week or so, however, it is tough to pinpoint how much will fall and what the coverage area will look like. So, the current forecast raises many more questions than it does provide answers. Stay tuned on this. Traders will continue to closely scrutinize every twist and turn in the forecast going forward. The weekly Export Sales Report will be delayed until tomorrow as a result of the government holiday this past Monday. Yesterday, the funds sold 2000 contracts of corn, were net even on soybeans, and bought 2000 contracts of wheat. They are now estimated to be net short 92,650 contracts of corn, net short 5290 contracts of soybeans, and net short 131,050 contracts of wheat. From a chart perspective, July corn faces initial resistance at the psychological 6.00 level, followed by the one-month high charted on Friday, 6.0675. Initial support lies at 5.9225, the overnight low, followed by yesterday’s low, 5.7750, and then the 5.50 area. July soybeans face initial resistance at 13.23, the overnight high, followed by Friday’s high, 13.4350, and then 13.50. Initial support lies at the psychological 13.00 mark, followed by the new 16-month low charted yesterday, 12.7075. Opening calls are higher.
Have a great Thursday.
Good Morning. Corn and soybean futures were higher overnight. July corn finished the overnight session up 9 ¾ cents, settling at 6.0375. July soybeans were up 22 ¼ cents, settling at 13.22. In the outside markets, as of 7:40am: The US Dollar Index is off 139 points, trading at 104.187. July crude oil is up 4 cents, trading at $68.13 per barrel. Precious metals are lower, except platinum. Industrial metals are mixed. The Electronic Mini-DJIA is off 46 points, trading at 32,933. Corn and soybean futures managed to finish yesterday’s trading session well above the lows charted for the day. That optimism continued overnight, with technical buying, the outside markets, and weather concerns lending plenty of support to futures. After soybean futures charted new multi-month lows yesterday, it is not entirely surprising that soybean and corn futures were due for a bit of a bounce from a technical perspective. The outside markets are not nearly as ugly this morning as they were 24 hours ago. The US Dollar Index has backed off of yesterday’s highs, allowing for crude oil futures and most commodities to recover a bit. The weather forecast for the Corn Belt continues to be the main focus in Chicago. Despite some scattered rainfall in the last 24 hours, much of the Belt remains dry and could really use a drink. This morning, the 11-15 day forecast for the heart of the Corn Belt is a tad drier than it was yesterday. Scattered rainfall is forecasted in the coming week or so, however, it is tough to pinpoint how much will fall and what the coverage area will look like. So, the current forecast raises many more questions than it does provide answers. Stay tuned on this. Traders will continue to closely scrutinize every twist and turn in the forecast going forward. The weekly Export Sales Report will be delayed until tomorrow as a result of the government holiday this past Monday. Yesterday, the funds sold 2000 contracts of corn, were net even on soybeans, and bought 2000 contracts of wheat. They are now estimated to be net short 92,650 contracts of corn, net short 5290 contracts of soybeans, and net short 131,050 contracts of wheat. From a chart perspective, July corn faces initial resistance at the psychological 6.00 level, followed by the one-month high charted on Friday, 6.0675. Initial support lies at 5.9225, the overnight low, followed by yesterday’s low, 5.7750, and then the 5.50 area. July soybeans face initial resistance at 13.23, the overnight high, followed by Friday’s high, 13.4350, and then 13.50. Initial support lies at the psychological 13.00 mark, followed by the new 16-month low charted yesterday, 12.7075. Opening calls are higher.
Have a great Thursday.