MarketEdge AM Comments
Dec 27, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were lower overnight. March corn finished the overnight session off a penny, settling at 4.7925. January soybeans were off 2 ¾ cents, settling at 13.1050. In the outside markets, as of 7:45am: The US Dollar Index is off 150 points, trading at 101.319. February crude oil is off 72 cents, trading at $74.85 per barrel. Precious metals are mixed. Industrial metals are higher, except tin. The Electronic Mini-DJIA is off 7 points, trading at 37,887. Corn and soybean futures were under pressure overnight following yesterday’s impressive rally that was supported by sharply higher wheat futures. Trading volume was incredibly light overnight in typical “holiday” fashion. A generally favorable weather forecast for Brazil is weighing on futures this morning. Private yield estimates for the Brazilian soybean crop are declining, however, the forecast for the end of the growing season should limit further production problems. Other fundamental news regarding grains and oilseeds is limited this morning. Given light “holiday-style” trading volume, there could be increased volatility this week. That being said, fresh news concerning corn and soybeans is expected to be limited as we head into the end of the calendar year. The weekly Export Sales Report will be delayed until Friday this week because Christmas fell on a Monday and government offices were closed. Yesterday, the funds bought 3000 contracts of corn, bought 6000 contracts of soybeans, and bought 10,000 contracts of wheat. They are now estimated to be net short 178,360 contracts of corn, net long 7490 contracts of soybeans, and net short 58,880 contracts of wheat. From a chart perspective, March corn faces initial resistance at yesterday’s high, 4.81, followed by the 4.85 area, and then 4.9375, the nearly six-week high charted on December 6th. Initial support lies at 4.7825, the overnight low, followed by the double-low charted yesterday and Friday, 4.7150, and then the contract low charted one week ago, 4.6825. January soybeans face initial resistance at yesterday’s high, 13.1450, followed by last week’s high charted on Tuesday, 13.2875, and then 13.44, the nearly four-week high charted on December 12th. Initial support lies at 13.0675, the overnight low, followed by the psychological 13.00 mark, and then 12.94, the nearly three-week low charted on Friday. Opening calls are lower.
Have a great Wednesday.
Good Morning. Corn and soybean futures were lower overnight. March corn finished the overnight session off a penny, settling at 4.7925. January soybeans were off 2 ¾ cents, settling at 13.1050. In the outside markets, as of 7:45am: The US Dollar Index is off 150 points, trading at 101.319. February crude oil is off 72 cents, trading at $74.85 per barrel. Precious metals are mixed. Industrial metals are higher, except tin. The Electronic Mini-DJIA is off 7 points, trading at 37,887. Corn and soybean futures were under pressure overnight following yesterday’s impressive rally that was supported by sharply higher wheat futures. Trading volume was incredibly light overnight in typical “holiday” fashion. A generally favorable weather forecast for Brazil is weighing on futures this morning. Private yield estimates for the Brazilian soybean crop are declining, however, the forecast for the end of the growing season should limit further production problems. Other fundamental news regarding grains and oilseeds is limited this morning. Given light “holiday-style” trading volume, there could be increased volatility this week. That being said, fresh news concerning corn and soybeans is expected to be limited as we head into the end of the calendar year. The weekly Export Sales Report will be delayed until Friday this week because Christmas fell on a Monday and government offices were closed. Yesterday, the funds bought 3000 contracts of corn, bought 6000 contracts of soybeans, and bought 10,000 contracts of wheat. They are now estimated to be net short 178,360 contracts of corn, net long 7490 contracts of soybeans, and net short 58,880 contracts of wheat. From a chart perspective, March corn faces initial resistance at yesterday’s high, 4.81, followed by the 4.85 area, and then 4.9375, the nearly six-week high charted on December 6th. Initial support lies at 4.7825, the overnight low, followed by the double-low charted yesterday and Friday, 4.7150, and then the contract low charted one week ago, 4.6825. January soybeans face initial resistance at yesterday’s high, 13.1450, followed by last week’s high charted on Tuesday, 13.2875, and then 13.44, the nearly four-week high charted on December 12th. Initial support lies at 13.0675, the overnight low, followed by the psychological 13.00 mark, and then 12.94, the nearly three-week low charted on Friday. Opening calls are lower.
Have a great Wednesday.