MarketEdge AM Comments

Nov 15, 2023

(Phil Knuth)

Good Morning.  Corn and soybean futures finished the overnight session lower.  December corn was off 2 ½ cents, settling at 4.7575.  January soybeans were off a penny and a quarter, settling at 13.8850.  In the outside markets, as of 7:40am:  The US Dollar Index is up 30 points, trading at 104.085.  December crude oil is off 48 cents, trading at $77.78 per barrel.  Precious metals are all higher.  Industrial metals are all higher.  The Electronic Mini-DJIA is up 112 points, trading at 34,999.  Fresh fundamental news is limited this morning.  Corn and soybean futures are well supported, however, both commodities are pressured by nearby technical resistance levels.  A recent uptick in Chinese demand and South American weather concerns are propping up soybean futures.  In other news supportive to soybean futures this morning, the National Oilseed Processors’ Association will release October crush data at 11am.  Traders anticipate a record monthly soybean crush figure of 187.2 million bushels.  If realized, this figure would beat the previous monthly crush record set in December 2021 by 800,000 bushels and would be a 21.7 million bushel month-over-month increase.  Yesterday, the funds bought 1000 contracts of corn, bought 4000 contracts of soybeans, and sold 4000 contracts of wheat.  They are now estimated to be net short 171,070 contracts of corn, net long 83,775 contracts of soybeans, and net short 98,200 contracts of wheat.  From a chart perspective, December corn faces a cluster of initial resistance from 4.80, yesterday’s high, up to 4.8125.  This includes the highs from November 3rd, 6th, 8th, yesterday, and overnight.  Beyond 4.8125, further resistance is right around the corner at 4.8425, the double-high charted on October 26th and 30th.  Initial support lies at 4.7525, the overnight low, followed by the multi-year contract low charted on Monday, 4.61.  January soybeans charted a new 2 ½ month high overnight, at 13.9850.  That level now stands as initial resistance, followed immediately by the psychological 14.00 mark, and then the 3 ½ month high charted on August 28th, 14.20.  Initial support lies at 13.8575, the overnight low, followed by Monday’s chart gap, 13.4975-13.5025, and then 13.36, Thursday’s low.  Opening calls are steady/mixed.
Have a great Wednesday.

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Nov 30, 2023
Corn took the lead while soybeans treaded water lightly.
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