MarketEdge AM Comments

Sep 25, 2023

(Phil Knuth)

Good Morning.  Corn and soybean futures were slightly lower overnight.  December corn finished the overnight session off a quarter of a penny, settling at 4.77.  November soybeans were off 2 cents, settling at 12.9425.  In the outside markets, as of 7:45am:  The US Dollar Index is up 130 points, trading at 105.713.  November crude oil is off 19 cents, trading at $89.84 per barrel.  Precious metals are all lower.  Industrial metals are higher, except copper.  The Electronic Mini-DJIA is off 91 points, trading at 34,141.  It would sure be nice to actually have something to write about this morning.  Unfortunately, the same worn out tune from Friday is with us again to begin the week.  There is a general lack of news regarding grains and oilseeds to report on this morning.  Futures remain locked in a sideways to lower trading pattern with harvest right around the corner.  There has been limited harvest activity to start the season, however, as is typical, yield reports from early harvest activity have been all over the place.  Traders are awaiting widespread harvest activity and yield reports from the field before deciding which way this market should go.  In the meantime, lackluster demand continues to be an albatross around the neck of the market regardless of what kind of crop size we are dealing with.  On Friday, the funds bought 1000 contracts of corn, bought 1000 contracts of soybeans, and bought 2000 contracts of wheat.  They are now estimated to be net short 149,455 contracts of corn, net long 31,415 contracts of soybeans, and net short 104,950 contracts of wheat.  From a chart perspective, December corn finds initial support at the overnight low, 4.74, followed by the two-year contract low charted on Tuesday, 4.6775.  Initial resistance is at Friday’s high, 4.7850, followed immediately by 4.80, and then 4.83, last week’s high charted on Wednesday.  November soybeans find initial support at the new seven-week low charted overnight, 12.90, followed by the nearly three-month low charted on August 8th, 12.8225.  Initial resistance is at the psychological 13.00 mark, followed by 13.22, Thursday’s high, and then 13.50.  Opening calls are steady/lower.
Have a great Monday.

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