MarketEdge AM Comments
Jun 22, 2023
(Phil Knuth)
Good Morning. Turnaround Thursday… Corn and soybean futures were sharply lower overnight. September corn finished the overnight session off 10 ¼ cents, settling at 6.1325. August soybeans were off 28 ½ cents, settling at 14.1650. In the outside markets, as of 7:40am: The US Dollar Index is off 49 points, trading at 102.022. August crude oil is off $1.31, trading at $71.22 per barrel. Precious metals are all lower. Industrial metals are higher, except aluminum. The Electronic Mini-DJIA is off 83 points, trading at 34,152. Although we are certainly not “out of the woods” yet, weather-wise, profit-taking set in overnight following yesterday’s impressive rally and pressured futures. Rains were confined to the Western Corn Belt in the last 24-hours and that theme is forecasted to remain the same for the rest of the week, leaving the parched Eastern Corn Belt far too dry. Private analysts are in agreement that the extended forecast should provide some relief for the Eastern Corn Belt as the calendar flips to July. Hopefully, this forecast materializes. Until then, traders will remain on edge. Remember, this is a weather market, so really anything is possible. It is a waste of time to try to predict where it will go next as it is wholly up to Mother Nature and how traders react to what she throws at us. The weekly Export Sales Report will be delayed until tomorrow morning as a result of the federal holiday this past Monday. Yesterday, the funds bought 20,000 contracts of corn, bought 20,000 contracts of soybeans, and bought 15,000 contracts of wheat. They are now estimated to be net long 47,855 contracts of corn, net long 117,810 contracts of soybeans, and net short 83,550 contracts of wheat. From a chart perspective, September corn charted a new six-month high yesterday, at 6.2475. This level now stands as initial resistance, followed by 6.3125, the high charted on December 30th. Initial support lies at 6.1175, the overnight low, followed by the psychological 6.00 mark, and then 5.50. August soybeans charted a new three-month high yesterday, at 14.47. That level now stands as initial resistance, followed closely by 14.50, and then the psychological 15.00 level. Initial support lies at 14.1125, yesterday’s low, followed by the important 14.00 mark, and then 13.50. Opening calls are lower.
Have a great Thursday.
Good Morning. Turnaround Thursday… Corn and soybean futures were sharply lower overnight. September corn finished the overnight session off 10 ¼ cents, settling at 6.1325. August soybeans were off 28 ½ cents, settling at 14.1650. In the outside markets, as of 7:40am: The US Dollar Index is off 49 points, trading at 102.022. August crude oil is off $1.31, trading at $71.22 per barrel. Precious metals are all lower. Industrial metals are higher, except aluminum. The Electronic Mini-DJIA is off 83 points, trading at 34,152. Although we are certainly not “out of the woods” yet, weather-wise, profit-taking set in overnight following yesterday’s impressive rally and pressured futures. Rains were confined to the Western Corn Belt in the last 24-hours and that theme is forecasted to remain the same for the rest of the week, leaving the parched Eastern Corn Belt far too dry. Private analysts are in agreement that the extended forecast should provide some relief for the Eastern Corn Belt as the calendar flips to July. Hopefully, this forecast materializes. Until then, traders will remain on edge. Remember, this is a weather market, so really anything is possible. It is a waste of time to try to predict where it will go next as it is wholly up to Mother Nature and how traders react to what she throws at us. The weekly Export Sales Report will be delayed until tomorrow morning as a result of the federal holiday this past Monday. Yesterday, the funds bought 20,000 contracts of corn, bought 20,000 contracts of soybeans, and bought 15,000 contracts of wheat. They are now estimated to be net long 47,855 contracts of corn, net long 117,810 contracts of soybeans, and net short 83,550 contracts of wheat. From a chart perspective, September corn charted a new six-month high yesterday, at 6.2475. This level now stands as initial resistance, followed by 6.3125, the high charted on December 30th. Initial support lies at 6.1175, the overnight low, followed by the psychological 6.00 mark, and then 5.50. August soybeans charted a new three-month high yesterday, at 14.47. That level now stands as initial resistance, followed closely by 14.50, and then the psychological 15.00 level. Initial support lies at 14.1125, yesterday’s low, followed by the important 14.00 mark, and then 13.50. Opening calls are lower.
Have a great Thursday.