MarketEdge AM Comments

Jan 22, 2024

(Phil Knuth)

Good Morning.  Corn and soybean futures finished the overnight session steady/mixed.  March corn was up a quarter of a penny, settling at 4.4575.  March soybeans were up a quarter of a penny, settling at 12.1350.  In the outside markets, as of 7:45am:  The US Dollar Index is off 10 points, trading at 103.277.  February crude oil is up 22 cents, trading at $73.63 per barrel.  Precious metals are lower, except platinum.  Industrial metals are lower, except aluminum.  The Electronic Mini-DJIA is up 97 points, trading at 38,142.  Fresh news regarding grains and oilseeds is scant this morning.  Overnight, corn and soybean futures attempted to rally but ran out of steam, finishing the session mixed/mostly unchanged.  It was reminiscent of Friday’s trading session, in which a recovery rally was attempted but not followed through.  On Friday’s CFTC Commitment of Traders Report, it was confirmed that managed money added plenty to their short positions last week.  The funds added 34,400 contracts to their net short corn position and added 45,600 contracts to their net short soybean position.  Managed money’s corn position is approaching record-short levels.  Meanwhile, there is plenty of room on the soybean side to pile on additional shorts.  On Friday, the funds bought 1000 contracts of corn, sold 1000 contracts of soybeans, and bought 3000 contracts of wheat.  They are now estimated to be net short 271,650 contracts of corn, net short 83,830 contracts of soybeans, and net short 72,860 contracts of wheat.  From a chart perspective, March corn finds initial support at 4.4425, the overnight low, followed by the contract low charted on Thursday, 4.3675.  Initial resistance is at 4.4950, Friday’s high, and 4.50, followed by 4.60-4.6250, which includes the highs from everyday during the week of January 8th.  March soybeans find initial support at 12.0950, the overnight low, followed by the seven-month low charted on Thursday, 12.01.  Initial resistance is at 12.2150, the overnight high, followed by the 12.50 area.  Opening calls are mixed.
Have a great Monday.

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