MarketEdge AM Comments
May 05, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were higher overnight. July corn finished the overnight session up 4 cents, settling at 5.93. July soybeans were up 7 ¾ cents, settling at 14.2550. In the outside markets, as of 7:45am: The US Dollar Index is up 230 points, trading at 101.629. June crude oil is up $2.04, trading at $70.60 per barrel. Precious metals are all lower. Industrial metals are all lower. The Electronic Mini-DJIA is up 165 points, trading at 33,361. A recovery in crude oil futures benefitted corn and soybean futures overnight. Aside from that, there is relatively little fresh news this morning as it pertains to grains and oilseeds. All of the same themes remain. While a rally in crude oil and a key outside day reversal in corn futures on Wednesday are supporting futures, rapid planting progress and non-threatening weather continue to keep a lid on any kind of meaningful upside potential. Monday’s Crop Progress Report is expected to show a breakneck pace of planting progress during the week. Locally, there are several producers who are either completely finished planting or very close to the finish line. It is truly amazing what can be accomplished in short order these days now that hardly anyone has a planter smaller than a 12-row! The next key report that the trade is anticipating will be released one week from today; the May WASDE Report. Yesterday, the funds were net even on corn, net even on soybeans, and bought 1000 contracts of wheat. They are now estimated to be net short 31,060 contracts of corn, net long 85,130 contracts of soybeans, and net short 119,160 contracts of wheat. This afternoon’s CFTC Commitment of Traders Report will show actual managed money positions as of Tuesday. From a chart perspective, July corn faces initial resistance at the overnight high, 5.9350, followed by the psychological 6.00 mark, and then 6.12, last Wednesday’s high. Initial support lies at 5.8850, the overnight low, followed by yesterday’s low, 5.79, and then the new 15-month low charted on Wednesday, 5.6925. July soybeans face initial resistance at 14.29, the overnight high, followed by 14.40, the high for the week charted on Tuesday, and then 14.50. Initial support lies at 14.05, yesterday’s low, followed by the psychological 14.00 level, and then the one-month low charted on Wednesday, 13.9225. Opening calls are higher.
Have a great Friday and an even better weekend.
Good Morning. Corn and soybean futures were higher overnight. July corn finished the overnight session up 4 cents, settling at 5.93. July soybeans were up 7 ¾ cents, settling at 14.2550. In the outside markets, as of 7:45am: The US Dollar Index is up 230 points, trading at 101.629. June crude oil is up $2.04, trading at $70.60 per barrel. Precious metals are all lower. Industrial metals are all lower. The Electronic Mini-DJIA is up 165 points, trading at 33,361. A recovery in crude oil futures benefitted corn and soybean futures overnight. Aside from that, there is relatively little fresh news this morning as it pertains to grains and oilseeds. All of the same themes remain. While a rally in crude oil and a key outside day reversal in corn futures on Wednesday are supporting futures, rapid planting progress and non-threatening weather continue to keep a lid on any kind of meaningful upside potential. Monday’s Crop Progress Report is expected to show a breakneck pace of planting progress during the week. Locally, there are several producers who are either completely finished planting or very close to the finish line. It is truly amazing what can be accomplished in short order these days now that hardly anyone has a planter smaller than a 12-row! The next key report that the trade is anticipating will be released one week from today; the May WASDE Report. Yesterday, the funds were net even on corn, net even on soybeans, and bought 1000 contracts of wheat. They are now estimated to be net short 31,060 contracts of corn, net long 85,130 contracts of soybeans, and net short 119,160 contracts of wheat. This afternoon’s CFTC Commitment of Traders Report will show actual managed money positions as of Tuesday. From a chart perspective, July corn faces initial resistance at the overnight high, 5.9350, followed by the psychological 6.00 mark, and then 6.12, last Wednesday’s high. Initial support lies at 5.8850, the overnight low, followed by yesterday’s low, 5.79, and then the new 15-month low charted on Wednesday, 5.6925. July soybeans face initial resistance at 14.29, the overnight high, followed by 14.40, the high for the week charted on Tuesday, and then 14.50. Initial support lies at 14.05, yesterday’s low, followed by the psychological 14.00 level, and then the one-month low charted on Wednesday, 13.9225. Opening calls are higher.
Have a great Friday and an even better weekend.