MarketEdge PM Comments
May 23, 2023
(Cody Forde)
Good afternoon, everyone has been calling for a dead cat bounce from the start of April. I am convinced this is a back and fill unless we have a Friday close above 537^0 basis the December corn. Why do we need to close above 537^0 basis the December corn? When looking at the chart it looks like most of the volume was done in those levels and funds normally don’t like holding something under water for long. Volume was pretty lack luster; in the corn market we traded just under 80,000 contracts today in the December time slot. Compared to May 18th where we had close to 140,000 contracts traded during the session. I would expect a high-volume day with a painful move to the upside. My two cents: sell rallies and have targets ready in case China, or someone, comes to the table at night.
July corn was up 6^6 to 577^6 and December corn was up 517^6 up 8^6. July soybeans traded the other side of the coin at 1322^4 down 18^6 and November soybeans where 1187^6 down 9^2. Who was pulling corn higher? My guess is wheat with the Chicago wheat contracts up 16^6 to put the contract at 623^0.
Good afternoon, everyone has been calling for a dead cat bounce from the start of April. I am convinced this is a back and fill unless we have a Friday close above 537^0 basis the December corn. Why do we need to close above 537^0 basis the December corn? When looking at the chart it looks like most of the volume was done in those levels and funds normally don’t like holding something under water for long. Volume was pretty lack luster; in the corn market we traded just under 80,000 contracts today in the December time slot. Compared to May 18th where we had close to 140,000 contracts traded during the session. I would expect a high-volume day with a painful move to the upside. My two cents: sell rallies and have targets ready in case China, or someone, comes to the table at night.
July corn was up 6^6 to 577^6 and December corn was up 517^6 up 8^6. July soybeans traded the other side of the coin at 1322^4 down 18^6 and November soybeans where 1187^6 down 9^2. Who was pulling corn higher? My guess is wheat with the Chicago wheat contracts up 16^6 to put the contract at 623^0.
- Hotter and dry ten-day forecast sparked a small, short covering rally.
- Oversold, technically, on corn and soybeans.