MarketEdge AM Comments
Nov 28, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were higher overnight. December corn finished the overnight session up a quarter of a penny, settling at 4.5575. January soybeans were up 5 ¼ cents, settling at 13.35. In the outside markets, as of 7:40am: The US Dollar Index is off 50 points, trading at 103.146. January crude oil is off 5 cents, trading at $74.81 per barrel. Precious metals are higher, except palladium. Industrial metals are lower, except copper. The Electronic Mini-DJIA is off 15 points, trading at 35,358. Corn and wheat futures attempted to recover somewhat from disastrous chart performances yesterday while soybean futures remain supported by holding the 100-day moving average yesterday and South American weather concerns. December corn absolutely fell apart technically yesterday, charting a new multi-year contract low. The contract is still trading at levels not seen since July 2021, when it was a “baby” contract. Meanwhile, by holding key support yesterday, January soybeans are in a much better chart position. Plenty of questionable weather remains for Brazil, however, rain chances for the key growing region of Mato Grosso are getting better in the 6-15 day timeframe as of this morning. Yesterday’s weekly Export Inspections Report failed to impress anyone. Weekly corn export inspections, though not awful, aren’t any better than last year’s pace. USDA expects a 400 million bushel increase in corn exports year-over-year, so weekly inspections really need to pick up the pace. Weekly soybean export inspections were extremely disappointing, coming in at 53 million bushels versus 81.8 million bushels for the comparable week last year and 59.9 million bushels last week. Yesterday, the funds sold 3000 contracts of corn, sold 2000 contracts of soybeans, and sold 4000 contracts of wheat. They are now estimated to be net short 209,790 contracts of corn, net long 70,820 contracts of soybeans, and net short 122,420 contracts of wheat. From a chart perspective, December corn finds initial support at the overnight low, 4.55, followed by 4.5375, the new multi-year contract low charted yesterday. Initial resistance is at 4.5675, the overnight high, followed by 4.60. January soybeans find initial support at the overnight low, 13.2950, followed by the three-week low charted yesterday that was also the 100-day moving average, 13.2350. Initial resistance is at 13.40, followed by 13.50. Opening calls are higher.
Have a great Tuesday.
Good Morning. Corn and soybean futures were higher overnight. December corn finished the overnight session up a quarter of a penny, settling at 4.5575. January soybeans were up 5 ¼ cents, settling at 13.35. In the outside markets, as of 7:40am: The US Dollar Index is off 50 points, trading at 103.146. January crude oil is off 5 cents, trading at $74.81 per barrel. Precious metals are higher, except palladium. Industrial metals are lower, except copper. The Electronic Mini-DJIA is off 15 points, trading at 35,358. Corn and wheat futures attempted to recover somewhat from disastrous chart performances yesterday while soybean futures remain supported by holding the 100-day moving average yesterday and South American weather concerns. December corn absolutely fell apart technically yesterday, charting a new multi-year contract low. The contract is still trading at levels not seen since July 2021, when it was a “baby” contract. Meanwhile, by holding key support yesterday, January soybeans are in a much better chart position. Plenty of questionable weather remains for Brazil, however, rain chances for the key growing region of Mato Grosso are getting better in the 6-15 day timeframe as of this morning. Yesterday’s weekly Export Inspections Report failed to impress anyone. Weekly corn export inspections, though not awful, aren’t any better than last year’s pace. USDA expects a 400 million bushel increase in corn exports year-over-year, so weekly inspections really need to pick up the pace. Weekly soybean export inspections were extremely disappointing, coming in at 53 million bushels versus 81.8 million bushels for the comparable week last year and 59.9 million bushels last week. Yesterday, the funds sold 3000 contracts of corn, sold 2000 contracts of soybeans, and sold 4000 contracts of wheat. They are now estimated to be net short 209,790 contracts of corn, net long 70,820 contracts of soybeans, and net short 122,420 contracts of wheat. From a chart perspective, December corn finds initial support at the overnight low, 4.55, followed by 4.5375, the new multi-year contract low charted yesterday. Initial resistance is at 4.5675, the overnight high, followed by 4.60. January soybeans find initial support at the overnight low, 13.2950, followed by the three-week low charted yesterday that was also the 100-day moving average, 13.2350. Initial resistance is at 13.40, followed by 13.50. Opening calls are higher.
Have a great Tuesday.