MarketEdge AM Comments
Oct 27, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were higher overnight. December corn finished the overnight session up 2 ¼ cents, settling at 4.8150. November soybeans were up 14 ¼ cents, settling at 12.9375. In the outside markets, as of 7:45am: The US Dollar Index is up 160 points, trading at 106.762. December crude oil is up $1.52, trading at $84.73 per barrel. Precious metals are mixed. Industrial metals are lower, except copper. The Electronic Mini-DJIA is off 11 points, trading at 32,865. Soybean futures were the upside leader overnight, supported by sharply higher soybean meal futures, however, the 13.00 target on November futures continues to prove to be a contentious level to overcome. Weather played a supporting role overnight. Widespread rainfall across the Corn Belt, throwing a wrench into harvest progress, was supportive to corn and soybean futures. Ukraine has resumed grain exports via the Black Sea as of this morning after halting shipping earlier in the week in response to perceived Russian interference by air. As has been the case for what seems like forever now, this situation continues to be monitored closely by traders in Chicago. Speaking of situations that traders are watching closely, recent rainfall in Argentina should help to further planting progress while Northern Brazil could use a drink. Argentina’s corn crop is reported to be 22% planted, on pace with last year. Yesterday, the funds sold 1000 contracts of corn, sold 6000 contracts of soybeans, and bought 6000 contracts of wheat. They are now estimated to be net short 117,570 contracts of corn, net short 13,410 contracts of soybeans, and net short 112,950 contracts of wheat. This afternoon’s CFTC Commitment of Traders Report will show actual managed money positions as of Tuesday. From a chart perspective, December corn faces initial resistance at 4.83, the overnight high, followed by the psychological 5.00 mark, and then 5.0950, the nearly three-month high charted one week ago. Initial support lies at the four-week low charted on Wednesday, 4.7675, followed by 4.7375, the five-week low charted on September 25th, and then the two-plus year contract low charted on September 19th, 4.6775. November soybeans face initial resistance at 12.9675, the overnight high, followed by the psychological 13.00 level, and then 13.1850, the five-week high charted one week ago. Initial support lies within 12.7750 and 12.78, which contains the lows from overnight, yesterday, and Wednesday, followed by 12.7350, the October 13th low, and then the four-month low charted on October 12th, 12.5050. Opening calls are higher.
Have a great Friday and an even better weekend.
Good Morning. Corn and soybean futures were higher overnight. December corn finished the overnight session up 2 ¼ cents, settling at 4.8150. November soybeans were up 14 ¼ cents, settling at 12.9375. In the outside markets, as of 7:45am: The US Dollar Index is up 160 points, trading at 106.762. December crude oil is up $1.52, trading at $84.73 per barrel. Precious metals are mixed. Industrial metals are lower, except copper. The Electronic Mini-DJIA is off 11 points, trading at 32,865. Soybean futures were the upside leader overnight, supported by sharply higher soybean meal futures, however, the 13.00 target on November futures continues to prove to be a contentious level to overcome. Weather played a supporting role overnight. Widespread rainfall across the Corn Belt, throwing a wrench into harvest progress, was supportive to corn and soybean futures. Ukraine has resumed grain exports via the Black Sea as of this morning after halting shipping earlier in the week in response to perceived Russian interference by air. As has been the case for what seems like forever now, this situation continues to be monitored closely by traders in Chicago. Speaking of situations that traders are watching closely, recent rainfall in Argentina should help to further planting progress while Northern Brazil could use a drink. Argentina’s corn crop is reported to be 22% planted, on pace with last year. Yesterday, the funds sold 1000 contracts of corn, sold 6000 contracts of soybeans, and bought 6000 contracts of wheat. They are now estimated to be net short 117,570 contracts of corn, net short 13,410 contracts of soybeans, and net short 112,950 contracts of wheat. This afternoon’s CFTC Commitment of Traders Report will show actual managed money positions as of Tuesday. From a chart perspective, December corn faces initial resistance at 4.83, the overnight high, followed by the psychological 5.00 mark, and then 5.0950, the nearly three-month high charted one week ago. Initial support lies at the four-week low charted on Wednesday, 4.7675, followed by 4.7375, the five-week low charted on September 25th, and then the two-plus year contract low charted on September 19th, 4.6775. November soybeans face initial resistance at 12.9675, the overnight high, followed by the psychological 13.00 level, and then 13.1850, the five-week high charted one week ago. Initial support lies within 12.7750 and 12.78, which contains the lows from overnight, yesterday, and Wednesday, followed by 12.7350, the October 13th low, and then the four-month low charted on October 12th, 12.5050. Opening calls are higher.
Have a great Friday and an even better weekend.