MarketEdge AM Comments

May 24, 2023

(Phil Knuth)

Good Morning.  Corn futures were slightly higher and soybean futures were mostly lower overnight, aside from the nearby July contract.  July corn finished the overnight session up a penny and a half, settling at 5.79.  July soybeans were up ¾ of a penny, settling at 13.2325.  In the outside markets, as of 7:45am:  The US Dollar Index is up 26 points, trading at 103.514.  July crude oil is up $1.02, trading at $73.93 per barrel.  Precious metals are mixed.  Industrial metals are all lower.  The Electronic Mini-DJIA is off 122 points, trading at 33,010.  Fresh fundamental news regarding grains and oilseeds is limited this morning.  Rapid planting progress, a mostly favorable weather forecast for the Corn Belt, and struggling demand all continue to pressure futures.  Meanwhile, technical buying after charting multi-month lows is supportive to corn and soybean futures.  Traders are keeping an eye on dry weather in the eastern two-thirds of the Corn Belt, however, it is far too early in the growing season to get overly excited about the impact of dry weather when the crop has just recently been planted.  The extended forecast beyond 10 days currently calls for some relief for this large area on the Corn Belt.  If that forecast does not materialize and weather remains dry, it would make sense to expect a weather-driven rally in futures.  Until then, traders will continue to closely monitor the situation and every twist and turn in the forecast.  Yesterday, the funds bought 2000 contracts of corn, sold 5000 contracts of soybeans, and bought 4000 contracts of wheat.  They are now estimated to be net short 90,660 contracts of corn, net long 3820 contracts of soybeans, and net short 129,475 contracts of wheat.  From a chart perspective, July corn faces initial resistance at the double-high from yesterday and overnight, 5.8075, followed by last Monday’s high, 5.9875, and then the psychological 6.00 level, which was also the high from Monday, May 8th.  Initial support lies at 5.74, the overnight low, followed by 5.50, and then the 18-month low charted on Thursday, 5.47.  July soybeans face initial resistance at the overnight high, 13.2825, followed by 13.50, and then the psychological 14.00 mark.  Initial support lies at 13.1550, yesterday’s low, followed by the double-low from Friday and Monday which was also a 10-month low for the contract, 13.0475, and then the 16-month low for the contract charted on July 22, 2022, 12.99.  Opening calls are mixed.
Have a great Wednesday.

Read More News

May 31, 2023
As May wraps up, grains came back from their double digit down earlier today.
May 31, 2023
​Good Morning.  Corn and soybean futures were sharply lower overnight.
May 30, 2023
Good afternoon, the markets were lower on slightly better rain coverage coming later in June