MarketEdge AM Comments
Nov 29, 2023
(Phil Knuth)
Good Morning. Corn futures were mostly lower and soybean futures were higher overnight. December corn finished the overnight session off one penny, settling at 4.5050. January soybeans were up 5 cents, settling at 13.5150. In the outside markets, as of 7:45am: The US Dollar Index is up 80 points, trading at 102.823. January crude oil is up $1.22, trading at $77.63 per barrel. Precious metals are mixed. Industrial metals are higher, except zinc. The Electronic Mini-DJIA is up 138 points, trading at 35,583. So far, every trading session this week has featured a new multi-year contract low in December corn. Overnight, December corn bottomed out right at the psychological 4.50 mark. Tomorrow is First Notice Day for December corn futures and the December to March spread continues to widen out ahead of delivery, pushing out as far as 22 ½ cents overnight. Basis contracts and hedge-to-arrive contracts versus December futures must be either priced or rolled before the conclusion of trading tomorrow afternoon. The weather forecast for Brazil has gotten slightly drier overall compared to yesterday’s model run. Drier weather will be welcome in the South where planting has been delayed by too much precipitation, however, Central, Western, and Northern Brazil could certainly use a drink. That is not to say that rains are not forecasted for those dry areas of Brazil, just that chances for heavy rainfall have backed off a bit this morning. Yesterday, the funds sold 1000 contracts of corn, bought 5000 contracts of soybeans, and bought 3000 contracts of wheat. They are now estimated to be net short 210,790 contracts of corn, net long 75,820 contracts of soybeans, and net short 119,420 contracts of wheat. From a chart perspective, December corn finds initial support at the new multi-year contract low charted overnight, 4.50. Support below this level is extremely thin, save for maybe the psychological 4.00 level. Initial resistance is at 4.53, the overnight high, followed by 4.60. January soybeans find initial support at 13.4075, the overnight low, followed by 13.2350, the three-week low charted on Monday. Initial resistance is at 13.52, the overnight high, followed by 13.8925, last week’s high charted on Tuesday. Opening calls are mixed.
Have a great Wednesday.
Good Morning. Corn futures were mostly lower and soybean futures were higher overnight. December corn finished the overnight session off one penny, settling at 4.5050. January soybeans were up 5 cents, settling at 13.5150. In the outside markets, as of 7:45am: The US Dollar Index is up 80 points, trading at 102.823. January crude oil is up $1.22, trading at $77.63 per barrel. Precious metals are mixed. Industrial metals are higher, except zinc. The Electronic Mini-DJIA is up 138 points, trading at 35,583. So far, every trading session this week has featured a new multi-year contract low in December corn. Overnight, December corn bottomed out right at the psychological 4.50 mark. Tomorrow is First Notice Day for December corn futures and the December to March spread continues to widen out ahead of delivery, pushing out as far as 22 ½ cents overnight. Basis contracts and hedge-to-arrive contracts versus December futures must be either priced or rolled before the conclusion of trading tomorrow afternoon. The weather forecast for Brazil has gotten slightly drier overall compared to yesterday’s model run. Drier weather will be welcome in the South where planting has been delayed by too much precipitation, however, Central, Western, and Northern Brazil could certainly use a drink. That is not to say that rains are not forecasted for those dry areas of Brazil, just that chances for heavy rainfall have backed off a bit this morning. Yesterday, the funds sold 1000 contracts of corn, bought 5000 contracts of soybeans, and bought 3000 contracts of wheat. They are now estimated to be net short 210,790 contracts of corn, net long 75,820 contracts of soybeans, and net short 119,420 contracts of wheat. From a chart perspective, December corn finds initial support at the new multi-year contract low charted overnight, 4.50. Support below this level is extremely thin, save for maybe the psychological 4.00 level. Initial resistance is at 4.53, the overnight high, followed by 4.60. January soybeans find initial support at 13.4075, the overnight low, followed by 13.2350, the three-week low charted on Monday. Initial resistance is at 13.52, the overnight high, followed by 13.8925, last week’s high charted on Tuesday. Opening calls are mixed.
Have a great Wednesday.