MarketEdge AM Comments
Feb 12, 2024
(Phil Knuth)
Good Morning. Corn and soybean futures were higher overnight. March corn finished the overnight session up 2 ¼ cents, settling at 4.3125. March soybeans were up 9 ½ cents, settling at 11.93. In the outside markets, as of 7:40am: The US Dollar Index is up 70 points, trading at 104.180. March crude oil is off 77 cents, trading at $76.07 per barrel. Precious metals are all higher. Industrial metals are mixed. The Electronic Mini-DJIA is off 43 points, trading at 38,705. Corn and soybeans staged a half-hearted recovery rally overnight. Trading volume was very light. A general lack of fresh friendly fundamental news, the “hangover” from the Super Bowl, and the fact that the Chinese Lunar New Year Holiday started on Saturday all kept trading volume limited. South American weather and the pace of Safrinha corn planting continue to pressure grains and oilseeds. Over the weekend, Argentina received widespread rainfall. This is forecasted to continue through tomorrow, hopefully helping to mitigate further damage to production potential following a hot and dry stretch. Meanwhile, in Brazil, Safrinha corn planting is off to a great start. In Mato Grosso, 44% of the Safrinha corn crop has already been planted and the weather forecast for the next ten days or so should be conducive for timely planting. On Friday, the funds sold 3000 contracts of corn, sold 5000 contracts of soybeans, and bought 3000 contracts of wheat. They are now estimated to be net short 299,680 contracts of corn, net short 121,160 contracts of soybeans, and net short 68,320 contracts of wheat. From a chart perspective, March corn faces initial resistance at the overnight high, 4.3275, followed by 4.37, the double-high charted on Thursday and Friday, and then last week’s high charted on Tuesday, 4.4550. Initial support lies at the overnight low, 4.29, followed immediately by the new contract low charted on Friday, 4.2825. March soybeans face initial resistance at the overnight high, 11.9425, followed by the psychological 12.00 level, and then last week’s high charted on Tuesday, 12.0550. Initial support lies in the 11.7925-11.8250 range, which includes the lows from overnight, Friday, Thursday, Wednesday, and Monday, followed by the June 8th low, 11.7525, and then 11.4525, the contract low charted on May 31st. Opening calls are higher.
Have a great Monday.
Good Morning. Corn and soybean futures were higher overnight. March corn finished the overnight session up 2 ¼ cents, settling at 4.3125. March soybeans were up 9 ½ cents, settling at 11.93. In the outside markets, as of 7:40am: The US Dollar Index is up 70 points, trading at 104.180. March crude oil is off 77 cents, trading at $76.07 per barrel. Precious metals are all higher. Industrial metals are mixed. The Electronic Mini-DJIA is off 43 points, trading at 38,705. Corn and soybeans staged a half-hearted recovery rally overnight. Trading volume was very light. A general lack of fresh friendly fundamental news, the “hangover” from the Super Bowl, and the fact that the Chinese Lunar New Year Holiday started on Saturday all kept trading volume limited. South American weather and the pace of Safrinha corn planting continue to pressure grains and oilseeds. Over the weekend, Argentina received widespread rainfall. This is forecasted to continue through tomorrow, hopefully helping to mitigate further damage to production potential following a hot and dry stretch. Meanwhile, in Brazil, Safrinha corn planting is off to a great start. In Mato Grosso, 44% of the Safrinha corn crop has already been planted and the weather forecast for the next ten days or so should be conducive for timely planting. On Friday, the funds sold 3000 contracts of corn, sold 5000 contracts of soybeans, and bought 3000 contracts of wheat. They are now estimated to be net short 299,680 contracts of corn, net short 121,160 contracts of soybeans, and net short 68,320 contracts of wheat. From a chart perspective, March corn faces initial resistance at the overnight high, 4.3275, followed by 4.37, the double-high charted on Thursday and Friday, and then last week’s high charted on Tuesday, 4.4550. Initial support lies at the overnight low, 4.29, followed immediately by the new contract low charted on Friday, 4.2825. March soybeans face initial resistance at the overnight high, 11.9425, followed by the psychological 12.00 level, and then last week’s high charted on Tuesday, 12.0550. Initial support lies in the 11.7925-11.8250 range, which includes the lows from overnight, Friday, Thursday, Wednesday, and Monday, followed by the June 8th low, 11.7525, and then 11.4525, the contract low charted on May 31st. Opening calls are higher.
Have a great Monday.