MarketEdge AM Comments
Oct 24, 2023
(Phil Knuth)
Good Morning. Corn futures were lower and soybean futures were slightly higher overnight. December corn finished the overnight session off 3 ¾ cents, settling at 4.8650. November soybeans were up 2 ¾ cents, settling at 12.8950. In the outside markets, as of 7:45am: The US Dollar Index is up 410 points, trading at 105.942. December crude oil is up 2 cents, trading at $85.51 per barrel. Precious metals are all lower. Industrial metals are lower, except copper. The Electronic Mini-DJIA is up 155 points, trading at 33,222. The chart accomplishments of November soybeans and December corn last week now seem a distant memory. Rallies above 5.00 December corn and 13.00 November beans failed miserably. What had been interpreted as a move into new trading ranges last week now appears to have been a fluke driven by a flurry of speculative buying that really did not have any meat behind it. So, here we are, back in the old familiar trading ranges that everyone is more than tired with. Faced with harvest pressure, it is hard to imagine a scenario where there is much upside potential for corn and soybean futures in the near-term. That being said, corn and soybeans are well supported by recent lows. Yesterday afternoon’s Crop Progress and Conditions Report showed national corn harvest progress at 59% complete. This figure is five points ahead of the five-year average. National soybean harvest progress was reported to be 76% complete. This figure is seven points ahead of the five-year average. Yesterday, the funds sold 3000 contracts of corn, sold 5000 contracts of soybeans, and bought 1000 contracts of wheat. They are now estimated to be net short 105,570 contracts of corn, net short 7410 contracts of soybeans, and net short 106,950 contracts of wheat. From a chart perspective, December corn finds initial support at 4.86, the overnight low, followed by 4.8225, the October 12th low, and then the 4.75 area. Initial resistance is at 4.9150, the overnight high, followed by the psychological 5.00 mark, and then 5.0950, the twelve-week high charted on Friday. November soybeans find initial support at the overnight low, 12.8050, followed by the four-month low charted on October 12th, 12.5050. Initial resistance is at 12.9325, the overnight high, followed by the psychological 13.00 level, and then 13.1850, the five-week high charted on Friday. Opening calls are mixed.
Have a great Tuesday.
Good Morning. Corn futures were lower and soybean futures were slightly higher overnight. December corn finished the overnight session off 3 ¾ cents, settling at 4.8650. November soybeans were up 2 ¾ cents, settling at 12.8950. In the outside markets, as of 7:45am: The US Dollar Index is up 410 points, trading at 105.942. December crude oil is up 2 cents, trading at $85.51 per barrel. Precious metals are all lower. Industrial metals are lower, except copper. The Electronic Mini-DJIA is up 155 points, trading at 33,222. The chart accomplishments of November soybeans and December corn last week now seem a distant memory. Rallies above 5.00 December corn and 13.00 November beans failed miserably. What had been interpreted as a move into new trading ranges last week now appears to have been a fluke driven by a flurry of speculative buying that really did not have any meat behind it. So, here we are, back in the old familiar trading ranges that everyone is more than tired with. Faced with harvest pressure, it is hard to imagine a scenario where there is much upside potential for corn and soybean futures in the near-term. That being said, corn and soybeans are well supported by recent lows. Yesterday afternoon’s Crop Progress and Conditions Report showed national corn harvest progress at 59% complete. This figure is five points ahead of the five-year average. National soybean harvest progress was reported to be 76% complete. This figure is seven points ahead of the five-year average. Yesterday, the funds sold 3000 contracts of corn, sold 5000 contracts of soybeans, and bought 1000 contracts of wheat. They are now estimated to be net short 105,570 contracts of corn, net short 7410 contracts of soybeans, and net short 106,950 contracts of wheat. From a chart perspective, December corn finds initial support at 4.86, the overnight low, followed by 4.8225, the October 12th low, and then the 4.75 area. Initial resistance is at 4.9150, the overnight high, followed by the psychological 5.00 mark, and then 5.0950, the twelve-week high charted on Friday. November soybeans find initial support at the overnight low, 12.8050, followed by the four-month low charted on October 12th, 12.5050. Initial resistance is at 12.9325, the overnight high, followed by the psychological 13.00 level, and then 13.1850, the five-week high charted on Friday. Opening calls are mixed.
Have a great Tuesday.