MarketEdge AM Comments
Dec 19, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were lower overnight. March corn finished the overnight session off 1 ¾ cents, settling at 4.7525. January soybeans were off 8 ¾ cents, settling at 13.1825. In the outside markets, as of 7:40am: The US Dollar Index is off 220 points, trading at 102.346. January crude oil is off 17 cents, trading at $72.30 per barrel. Precious metals are all higher. Industrial metals are higher, except tin. The Electronic Mini-DJIA is up 78 points, trading at 37,756. Trading volume was light overnight but what volume there was remained focused on soybean futures. Meanwhile, corn futures continue to take the path of least resistance (lower) with incredibly light trading volume. There just isn’t enough of a corn “story” out there to inspire any kind of meaningful rally and the current balance sheet does not offer any cause for concern from a supply perspective. Traders continue to keep a close eye on South American weather. Yesterday, Argentina and Southern Brazil received rainfall while the central, western, and northern growing regions of Brazil that are of the utmost concern to traders remained dry. In the five-day forecast, though, the important areas in Central, Western, and Northern Brazil should receive much needed precipitation before returning to a dry trend in the 6-10 day timeframe. Yesterday, the funds sold 3000 contracts of corn, bought 4000 contracts of soybeans, and sold 3000 contracts of wheat. They are now estimated to be net short 159,655 contracts of corn, net long 33,750 contracts of soybeans, and net short 73,110 contracts of wheat. From a chart perspective, March corn finds initial support at the overnight low, 4.75, followed by the contract low charted on November 29th, 4.7050. Initial resistance is in the 4.85 area, followed by the one-month high charted on December 6th, 4.9375, and then 4.9650, the 1 ½ month high charted on November 15th. January soybeans find initial support at the overnight low, 13.1525, followed by the psychological 13.00 mark, and then 12.92, the two-month low charted on December 7th. Initial resistance is at 13.2875, the overnight high, followed by 13.44, the three-week high charted one week ago, and then 13.52, the nearly one-month high charted on November 29th. Opening calls are lower.
Have a great Tuesday.
Good Morning. Corn and soybean futures were lower overnight. March corn finished the overnight session off 1 ¾ cents, settling at 4.7525. January soybeans were off 8 ¾ cents, settling at 13.1825. In the outside markets, as of 7:40am: The US Dollar Index is off 220 points, trading at 102.346. January crude oil is off 17 cents, trading at $72.30 per barrel. Precious metals are all higher. Industrial metals are higher, except tin. The Electronic Mini-DJIA is up 78 points, trading at 37,756. Trading volume was light overnight but what volume there was remained focused on soybean futures. Meanwhile, corn futures continue to take the path of least resistance (lower) with incredibly light trading volume. There just isn’t enough of a corn “story” out there to inspire any kind of meaningful rally and the current balance sheet does not offer any cause for concern from a supply perspective. Traders continue to keep a close eye on South American weather. Yesterday, Argentina and Southern Brazil received rainfall while the central, western, and northern growing regions of Brazil that are of the utmost concern to traders remained dry. In the five-day forecast, though, the important areas in Central, Western, and Northern Brazil should receive much needed precipitation before returning to a dry trend in the 6-10 day timeframe. Yesterday, the funds sold 3000 contracts of corn, bought 4000 contracts of soybeans, and sold 3000 contracts of wheat. They are now estimated to be net short 159,655 contracts of corn, net long 33,750 contracts of soybeans, and net short 73,110 contracts of wheat. From a chart perspective, March corn finds initial support at the overnight low, 4.75, followed by the contract low charted on November 29th, 4.7050. Initial resistance is in the 4.85 area, followed by the one-month high charted on December 6th, 4.9375, and then 4.9650, the 1 ½ month high charted on November 15th. January soybeans find initial support at the overnight low, 13.1525, followed by the psychological 13.00 mark, and then 12.92, the two-month low charted on December 7th. Initial resistance is at 13.2875, the overnight high, followed by 13.44, the three-week high charted one week ago, and then 13.52, the nearly one-month high charted on November 29th. Opening calls are lower.
Have a great Tuesday.