MarketEdge AM Comments
May 22, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were higher overnight. July corn finished the overnight session up 6 ¾ cents, settling at 5.6125. July soybeans were up 13 ½ cents, settling at 13.2075. In the outside markets, as of 7:40am: The US Dollar Index is off 118 points, trading at 103.080. June crude oil is up 5 cents, trading at $71.60 per barrel. Precious metals are mixed. Industrial metals are higher, except copper. The Electronic Mini-DJIA is up 38 points, trading at 33,534. Fresh fundamental news is relatively limited this morning. Soybean futures were the upside leader overnight, dragging corn futures along for the ride. Meanwhile, wheat futures continue to drag on feedgrains, with the nearby contract dipping below $6 per bushel for the first time in well over a year. This morning, traders are laser-focused on North Dakota weather and planting progress and on debt ceiling discussions in Washington, DC. The current nearby forecast for North Dakota should allow a window of opportunity for farmers to get the crop planted. North Dakota’s crop insurance date is Thursday, the 25th, so we are really getting down to the wire. There is still plenty of discussion amongst traders regarding potential prevent plant acreage in North Dakota. Hopefully, both sides can come together and reach some kind of agreement in Washington in order to stave off the disaster of the government defaulting on its debt. The catastrophe of a debt default would have an extremely negative impact on all aspects of the economy, both domestically and globally. On Friday, the funds sold 1000 contracts of corn, sold 7000 contracts of soybeans, and sold 2000 contracts of wheat. They are now estimated to be net short 102,660 contracts of corn, net short 1180 contracts of soybeans, and net short 134,475 contracts of wheat. From a chart perspective, July corn faces initial resistance at Friday’s high, 5.7175, followed by last week’s high charted on Monday, 5.9875, and then the psychological 6.00 mark, which was also the high from two Mondays ago. Initial support lies at the 18-month low charted on Thursday, 5.47. July soybeans face initial resistance at 13.23, the overnight high, followed by 13.50, and then the psychological 14.00 mark. Initial support lies at the double-low from overnight and Friday, 13.0475, which is also a 10-month low for the contract, followed by 12.99, the 16-month low charted on July 22, 2022. Opening calls are mixed/higher.
Have a great Monday.
Good Morning. Corn and soybean futures were higher overnight. July corn finished the overnight session up 6 ¾ cents, settling at 5.6125. July soybeans were up 13 ½ cents, settling at 13.2075. In the outside markets, as of 7:40am: The US Dollar Index is off 118 points, trading at 103.080. June crude oil is up 5 cents, trading at $71.60 per barrel. Precious metals are mixed. Industrial metals are higher, except copper. The Electronic Mini-DJIA is up 38 points, trading at 33,534. Fresh fundamental news is relatively limited this morning. Soybean futures were the upside leader overnight, dragging corn futures along for the ride. Meanwhile, wheat futures continue to drag on feedgrains, with the nearby contract dipping below $6 per bushel for the first time in well over a year. This morning, traders are laser-focused on North Dakota weather and planting progress and on debt ceiling discussions in Washington, DC. The current nearby forecast for North Dakota should allow a window of opportunity for farmers to get the crop planted. North Dakota’s crop insurance date is Thursday, the 25th, so we are really getting down to the wire. There is still plenty of discussion amongst traders regarding potential prevent plant acreage in North Dakota. Hopefully, both sides can come together and reach some kind of agreement in Washington in order to stave off the disaster of the government defaulting on its debt. The catastrophe of a debt default would have an extremely negative impact on all aspects of the economy, both domestically and globally. On Friday, the funds sold 1000 contracts of corn, sold 7000 contracts of soybeans, and sold 2000 contracts of wheat. They are now estimated to be net short 102,660 contracts of corn, net short 1180 contracts of soybeans, and net short 134,475 contracts of wheat. From a chart perspective, July corn faces initial resistance at Friday’s high, 5.7175, followed by last week’s high charted on Monday, 5.9875, and then the psychological 6.00 mark, which was also the high from two Mondays ago. Initial support lies at the 18-month low charted on Thursday, 5.47. July soybeans face initial resistance at 13.23, the overnight high, followed by 13.50, and then the psychological 14.00 mark. Initial support lies at the double-low from overnight and Friday, 13.0475, which is also a 10-month low for the contract, followed by 12.99, the 16-month low charted on July 22, 2022. Opening calls are mixed/higher.
Have a great Monday.