MarketEdge AM Comments

Oct 23, 2023

(Phil Knuth)

Good Morning.  Corn and soybean futures were lower overnight.  December corn finished the overnight session off a penny and a quarter, settling at 4.9425.  November soybeans were off 9 ¼ cents, settling at 12.93.  In the outside markets, as of 7:40am:  The US Dollar Index is off 90 points, trading at 106.078.  December crude oil is off 24 cents, settling at $87.84 per barrel.  Precious metals are mixed.  Industrial metals are lower, except zinc.  The Electronic Mini-DJIA is off 129 points, trading at 33,129.  Corn and soybeans followed through from Friday’s disappointing close overnight.  On Friday morning, it appeared as if December corn had decisively conquered key resistance, at the psychological 5.00 mark, much like November soybeans had closed solidly above the key 13.00 level on Wednesday.  As the session wore on, though, profit-taking set in and December corn was unable to hang onto the key 5.00 mark and the downward trend continued overnight, pulling November soybeans below 13.00.  A wet week is forecasted for the Corn Belt, limiting harvest activity, however, traders appear to be unconcerned considering how much progress was made last week.  Corn and soybean harvest progress reported this afternoon is expected to show harvest activity well ahead of five-year averages.  Traders continue to keep a watchful eye on slow planting progress in South America.  It is a tad early to ring the alarm bells just yet, but this situation bears watching.  Soybean planting in the central and western states of Brazil is running 10-15% behind last year at this time and corn planting in the southern states is 21% behind last year’s pace.  On Friday, the funds sold 8000 contracts of corn, sold 4000 contracts of soybeans, and sold 2000 contracts of wheat.  They are now estimated to be net short 111,570 contracts of corn, net short 3410 contracts of soybeans, and net short 110,950 contracts of wheat.  From a chart perspective, December corn finds initial support at the overnight low, 4.9325, followed by 4.8775, last week’s low charted on Tuesday, and then the 4.75 area.  Initial resistance is at the psychological 5.00 level, followed by 5.0950, the eleven-week high charted on Friday, and then the July 31st chart gap, 5.2450-5.2550.  November soybeans find initial support at 12.8950, the overnight low, followed by the 12.75 area, and then the four-month low charted on October 12th, 12.5050.  Initial resistance is at the psychological 13.00 mark, followed by 13.04, the overnight high, and then 13.1850, the four-week high charted on Friday.  Opening calls are lower.
Have a great Monday.

Read More News

Nov 01, 2023
Grains were mixed, with corn down and beans up.
Nov 01, 2023
Corn and soybean futures stayed close to unchanged overnight.
Oct 31, 2023
Corn and soybeans both traded higher today.