MarketEdge AM Comments

Oct 18, 2023

(Phil Knuth)

Good Morning.  Corn and soybean futures were higher overnight.  December corn finished the overnight session up 4 cents, settling at 4.93.  November soybeans were up 10 ¼ cents, settling at 13.07.  In the outside markets, as of 7:40am:  The US Dollar Index is off 20 points, trading at 106.231.  November crude oil is up $1.35, trading at $88.01 per barrel.  Precious metals are mixed.  Industrial metals are mixed.  The Electronic Mini-DJIA is off 57 points, trading at 34,087.  Soybean futures were, once again, the upside leader overnight, fueled by some positive demand stories.  Both yesterday and overnight, the nearby November contract pushed through key resistance, at the psychological 13.00 mark.  Today’s close will be important from a technical chart perspective.  Yesterday, the November contract traded above 13.00 but failed to close above it.  Should November soybeans manage to close above this tough level of chart resistance, it will be poised to go after higher technical targets.  Solid soybean export inspections and monthly crush data released on Monday have supported this recent move higher in soybean futures.  Planting delays in South America have also contributed to the rally, however, to a much lesser degree since it is still early in the South American planting season.  Meanwhile, corn futures are timidly following along with key chart resistance keeping a lid on upside potential while the harvest campaign moves along at a swift pace.  Yesterday, the funds sold 1000 contracts of corn, bought 3000 contracts of soybeans, and sold 2000 contracts of wheat.  They are now estimated to be net short 110,450 contracts of corn, net long 6815 contracts of soybeans, and net short 106,250 contracts of wheat.  From a chart perspective, December corn faces initial resistance at the overnight high, 4.94, followed by a cluster of tough resistance surrounding the psychological 5.00 mark, including the double-high from Thursday and Friday, 4.9875, the high for the month charted on the 6th, 4.99, and the eight-week contract high charted on August 29th, 4.9950.  Initial support lies at 4.8775, yesterday’s low, fllowed by 4.8225, last week’s low charted on Thursday, and then the 4.75 area.  November soybeans face initial resistance at the psychological 13.00 level, followed by the three-week high charted overnight, 13.10, and then the 13.20 area.  Initial support lies at 12.8550, yesterday’s low, followed by the 12.75 area, and then 12.5050, the four-month low charted on Thursday.  Opening calls are higher.
Have a great Wednesday.

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Nov 01, 2023
Grains were mixed, with corn down and beans up.
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Corn and soybean futures stayed close to unchanged overnight.
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