MarketEdge AM Comments
May 16, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were lower overnight. July corn finished the overnight session off 5 ¾ cents, settling at 5.8675. July soybeans were off 11 ¾ cents, settling at 13.89. In the outside markets, as of 7:45am: The US Dollar Index is off 30 points, trading at 102.404. June crude oil is up 24 cents, trading at $71.35 per barrel. Precious metals are all lower. Industrial metals are mixed. The Electronic Mini-DJIA is off 86 points, trading at 33,312. Rapid planting progress reported yesterday afternoon and consolidation after yesterday’s rally weighed on corn and soybean futures overnight. The US corn crop was reported to be 65% planted as of Sunday night. This figure is a 16-point advancement from last week, is 20 points ahead of last year at this time, and is six points ahead of the five-year average. In Iowa, the corn crop was reported to be 86% planted. This figure is 14 points ahead of the five-year average. In Illinois, the corn crop was reported to be 84% planted. This figure is 21 points ahead of the five-year average. So, there has certainly been some impressive corn planting progress so far this growing season, however, there is one key area of concern that traders will continue to monitor closely. North Dakota’s corn crop was only reported to be 5% planted as of Sunday night. The five-year average for this week of the year there is 26% and their crop insurance date is quickly approaching, May 25th. Traders are already starting to throw ideas around regarding how much prevent plant acreage we will see this year in North Dakota. The national soybean crop was reported to be 49% planted as of Sunday night. This figure is a 14-point advancement from last week, is 22 points ahead of last year at this time, and is 13 points ahead of the five-year average. Iowa’s soybean crop was reported to be 69% planted. This figure is 21 points ahead of the five-year average. The Illinois soybean crop was reported to be 77% planted. This figure is 32 points ahead of the five-year average. Yesterday, the funds bought 4000 contracts of corn, bought 3000 contracts of soybeans, and bought 7000 contracts of wheat. They are now estimated to be net short 108,505 contracts of corn, net long 40,765 contracts of soybeans, and net short 112,650 contracts of wheat. From a chart perspective, July corn finds initial support at the overnight low, 5.8675, followed by Friday’s low, 5.7275, and then the 16-month low charted on May 3rd, 5.6925. Initial resistance is at 5.9875, yesterday’s high, followed closely by the psychological 6.00 level, which was also last week’s high charted on Monday. July soybeans find initial support at the overnight low, 13.8850, followed by the 1 ½ month low charted on Thursday, 13.8525. Initial resistance is at the psychological 14.00 mark, followed by 14.4675, last week’s high charted on Monday. Opening calls are lower.
Have a great Tuesday.
Good Morning. Corn and soybean futures were lower overnight. July corn finished the overnight session off 5 ¾ cents, settling at 5.8675. July soybeans were off 11 ¾ cents, settling at 13.89. In the outside markets, as of 7:45am: The US Dollar Index is off 30 points, trading at 102.404. June crude oil is up 24 cents, trading at $71.35 per barrel. Precious metals are all lower. Industrial metals are mixed. The Electronic Mini-DJIA is off 86 points, trading at 33,312. Rapid planting progress reported yesterday afternoon and consolidation after yesterday’s rally weighed on corn and soybean futures overnight. The US corn crop was reported to be 65% planted as of Sunday night. This figure is a 16-point advancement from last week, is 20 points ahead of last year at this time, and is six points ahead of the five-year average. In Iowa, the corn crop was reported to be 86% planted. This figure is 14 points ahead of the five-year average. In Illinois, the corn crop was reported to be 84% planted. This figure is 21 points ahead of the five-year average. So, there has certainly been some impressive corn planting progress so far this growing season, however, there is one key area of concern that traders will continue to monitor closely. North Dakota’s corn crop was only reported to be 5% planted as of Sunday night. The five-year average for this week of the year there is 26% and their crop insurance date is quickly approaching, May 25th. Traders are already starting to throw ideas around regarding how much prevent plant acreage we will see this year in North Dakota. The national soybean crop was reported to be 49% planted as of Sunday night. This figure is a 14-point advancement from last week, is 22 points ahead of last year at this time, and is 13 points ahead of the five-year average. Iowa’s soybean crop was reported to be 69% planted. This figure is 21 points ahead of the five-year average. The Illinois soybean crop was reported to be 77% planted. This figure is 32 points ahead of the five-year average. Yesterday, the funds bought 4000 contracts of corn, bought 3000 contracts of soybeans, and bought 7000 contracts of wheat. They are now estimated to be net short 108,505 contracts of corn, net long 40,765 contracts of soybeans, and net short 112,650 contracts of wheat. From a chart perspective, July corn finds initial support at the overnight low, 5.8675, followed by Friday’s low, 5.7275, and then the 16-month low charted on May 3rd, 5.6925. Initial resistance is at 5.9875, yesterday’s high, followed closely by the psychological 6.00 level, which was also last week’s high charted on Monday. July soybeans find initial support at the overnight low, 13.8850, followed by the 1 ½ month low charted on Thursday, 13.8525. Initial resistance is at the psychological 14.00 mark, followed by 14.4675, last week’s high charted on Monday. Opening calls are lower.
Have a great Tuesday.