MarketEdge AM Comments

Jun 12, 2023

(Phil Knuth)

Good Morning.  Aside from nearby soybeans, all corn and soybean contracts were higher overnight.  July corn finished the overnight session up 8 ¼ cents, settling at 6.1250.  July soybeans were off a penny, settling at 13.8550.  In the outside markets, as of 7:45am:  The US Dollar Index is off 62 points, trading at 103.495.  July crude oil is off $1.99, trading at $68.18 per barrel.  Precious metals are lower, except palladium.  Industrial metals are mixed.  The Electronic Mini-DJIA is up 40 points, trading at 34,242.  On Friday, the June WASDE Report featured higher-than-anticipated domestic carryout projections.  Old and new crop corn and soybean carryout projections exceeded average trade estimates, however, they were within the ranges of trade expectations.  Despite the bearish report, corn and soybean futures traded higher overnight, supported by uncertain weather.  Although there was plenty of precipitation across the Corn Belt over the weekend, it was spotty in nature and many of the driest areas of the Corn Belt that are of utmost concern remain dry.  Weather models are not in agreement regarding widespread rainfall in the extended forecast.  This uncertainty has traders on edge and is lending plenty of support to futures.  This is most definitely a weather market, so make sure to have your seatbelt on tight as things can and do change at the drop of a hat in a weather market.  On Friday, the funds sold 5000 contracts of corn, bought 10,000 contracts of soybeans, and bought 2000 contracts of wheat.  They are now estimated to be net short 49,545 contracts of corn, net long 30,950 contracts of soybeans, and net short 121,280 contracts of wheat.  From a chart perspective, July corn posted a new seven-week high overnight, at 6.1750.  That level now stands as initial resistance, followed by the 3 ½ month high charted on April 18th, 6.4750.  Initial support lies at the psychological 6.00 level, followed by 5.95, last week’s low charted on Monday, and then 5.7750, the 2 ½ week low charted on May 31st.  July soybeans charted a new one-month high overnight, at 13.9275.  That level now stands as initial resistance, followed by the psychological 14.00 mark, and then 14.4675, the 1 ½ month high charted on May 8th.  Initial support lies at the overnight low, 13.7925, followed by 13.50, and then the psychological 13.00 level.  Opening calls are higher.
Have a great Monday.

Read More News

Jun 30, 2023
September corn closed down 35 cents at 4.8850 and December corn closed down 33 ¾ at 4.9475.
Jun 30, 2023
​Good Morning.  It is Report Day.  At 11am, USDA will release the highly anticipated Quarterly Stocks and Acreage Reports.
Jun 28, 2023
Grains continue their free fall today with rain continuing to fall and/or be forecasted for parts of the corn belt most needing a drink.