MarketEdge AM Comments
Oct 25, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures finished the overnight session lower. December corn was off a penny and a quarter, settling at 4.8275. November soybeans were off 4 cents, settling at 12.9125. In the outside markets, as of 7:45am: The US Dollar Index is up 160 points, trading at 106.430. December crude oil is up 27 cents, trading at $84.01 per barrel. Precious metals are mixed. Industrial metals are higher, except copper. The Electronic Mini-DJIA is up 92 points, trading at 33,361. Fresh news regarding grains and oilseeds is rather limited this morning. After failing to conquer key resistance levels late last week, corn and soybean futures have both retreated back into their respective comfortable trading ranges that they had traded within for the last several weeks. While key technical resistance levels are keeping a lid on upside potential for now, corn and soybeans remain well supported by recent lows. Volatile soybean meal futures and South American planting delays are supportive to soybean futures. Traders continue to keep a watchful eye on South American weather forecasts as farmers south of the Equator struggle to get the crop planted in a timely manner. So far, it is too early in the season to panic but planting activity is running behind last year and the average pace. Wet weather forecasted for the Corn Belt in the next several days should slow harvest activity, however, traders appear to be unfazed by this hiccup since corn and soybean harvest progress is currently running ahead of five-year averages. Yesterday, the funds sold 5000 contracts of corn, bought 4000 contracts of soybeans, and sold 4000 contracts of wheat. They are now estimated to be net short 110,570 contracts of corn, net short 3410 contracts of soybeans, and net short 110,950 contracts of wheat. From a chart perspective, December corn tested initial support overnight at the three-week low, 4.8225. Further support below this level is found at the overnight low, 4.81, followed by the 4.75 area. Initial resistance is at 4.86, the overnight high, followed by 4.90, and then the psychological 5.00 mark. November soybeans find initial support at the overnight low, 12.90, followed by 12.8050, yesterday’s low, and then the four-month low charted on October 12th, 12.5050. Initial resistance is at the psychological 13.00 level, followed immediately by the overnight high, 13.0125, and then the five-week high charted on Friday, 13.1850. Opening calls are mixed/lower.
Have a great Wednesday.
Good Morning. Corn and soybean futures finished the overnight session lower. December corn was off a penny and a quarter, settling at 4.8275. November soybeans were off 4 cents, settling at 12.9125. In the outside markets, as of 7:45am: The US Dollar Index is up 160 points, trading at 106.430. December crude oil is up 27 cents, trading at $84.01 per barrel. Precious metals are mixed. Industrial metals are higher, except copper. The Electronic Mini-DJIA is up 92 points, trading at 33,361. Fresh news regarding grains and oilseeds is rather limited this morning. After failing to conquer key resistance levels late last week, corn and soybean futures have both retreated back into their respective comfortable trading ranges that they had traded within for the last several weeks. While key technical resistance levels are keeping a lid on upside potential for now, corn and soybeans remain well supported by recent lows. Volatile soybean meal futures and South American planting delays are supportive to soybean futures. Traders continue to keep a watchful eye on South American weather forecasts as farmers south of the Equator struggle to get the crop planted in a timely manner. So far, it is too early in the season to panic but planting activity is running behind last year and the average pace. Wet weather forecasted for the Corn Belt in the next several days should slow harvest activity, however, traders appear to be unfazed by this hiccup since corn and soybean harvest progress is currently running ahead of five-year averages. Yesterday, the funds sold 5000 contracts of corn, bought 4000 contracts of soybeans, and sold 4000 contracts of wheat. They are now estimated to be net short 110,570 contracts of corn, net short 3410 contracts of soybeans, and net short 110,950 contracts of wheat. From a chart perspective, December corn tested initial support overnight at the three-week low, 4.8225. Further support below this level is found at the overnight low, 4.81, followed by the 4.75 area. Initial resistance is at 4.86, the overnight high, followed by 4.90, and then the psychological 5.00 mark. November soybeans find initial support at the overnight low, 12.90, followed by 12.8050, yesterday’s low, and then the four-month low charted on October 12th, 12.5050. Initial resistance is at the psychological 13.00 level, followed immediately by the overnight high, 13.0125, and then the five-week high charted on Friday, 13.1850. Opening calls are mixed/lower.
Have a great Wednesday.