MarketEdge AM Comments
Jun 21, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were sharply higher overnight. September corn finished the overnight session up 16 ¼ cents, settling at 6.0925. August soybeans were up 20 ½ cents, settling at 14.2875. In the outside markets, as of 7:45am: The US Dollar Index is up 110 points, trading at 102.650. August crude oil is off 9 cents, trading at $71.10 per barrel. Precious metals are all lower. Industrial metals are all lower. The Electronic Mini-DJIA is off 83 points. Shocking week-over-week declines in corn and soybean crop conditions ratings yesterday afternoon and persistent dry weather in the Eastern Corn Belt inspired the overnight rally. Traders had expected 2-3% reductions in both the national corn and soybean crop conditions ratings. Throughout last week, crop conditions deteriorated more than what the trade was anticipating. The national corn crop condition rating dropped six points from last week, to 55% good to excellent. This figure is 15 points behind last year at this time and is 14 points below the five-year average. In Iowa, the corn crop condition rating dropped by 11 points week-over-week, to 59% good to excellent. In Illinois, the corn crop condition rating dropped 12 points week-over-week, to a mere 36% good to excellent. The national soybean crop condition rating dropped five points from last week, to 54% good to excellent. This figure is 14 points below both last year at this time and the five-year average. In Iowa, the soybean crop condition rating dropped 10 points week-over-week, to 56% good to excellent. In Illinois, the soybean crop condition rating dropped 14 points week-over-week, to 33% good to excellent. This figure is just one point shy of being 30 points below the five-year average for this week of the year. Yesterday, the funds bought 2000 contracts of corn, bought 5000 contracts of soybeans, and bought 3000 contracts of wheat. They are now estimated to be net long 27,855 contracts of corn, net long 97,810 contracts of soybeans, and net short 98,550 contracts of wheat. From a chart perspective, September corn charted a new four-month high overnight, at 6.1250. That level now stands as initial resistance, followed by 6.2175, the six-month high charted on January 18th. Initial support lies at the psychological 6.00 level, followed by 5.50, and then the chart gap from last Monday, 5.2750-5.2975. August soybeans charted a new two-month high overnight, at 14.31. That level now stands as initial resistance, followed by 14.45 and 14.46, the highs from April 18th and 3rd, respectively. Initial support lies at 14.1125, the overnight low, followed by the psychological 14.00 mark, and then 13.50. Opening calls are higher.
Have a great Wednesday.
Good Morning. Corn and soybean futures were sharply higher overnight. September corn finished the overnight session up 16 ¼ cents, settling at 6.0925. August soybeans were up 20 ½ cents, settling at 14.2875. In the outside markets, as of 7:45am: The US Dollar Index is up 110 points, trading at 102.650. August crude oil is off 9 cents, trading at $71.10 per barrel. Precious metals are all lower. Industrial metals are all lower. The Electronic Mini-DJIA is off 83 points. Shocking week-over-week declines in corn and soybean crop conditions ratings yesterday afternoon and persistent dry weather in the Eastern Corn Belt inspired the overnight rally. Traders had expected 2-3% reductions in both the national corn and soybean crop conditions ratings. Throughout last week, crop conditions deteriorated more than what the trade was anticipating. The national corn crop condition rating dropped six points from last week, to 55% good to excellent. This figure is 15 points behind last year at this time and is 14 points below the five-year average. In Iowa, the corn crop condition rating dropped by 11 points week-over-week, to 59% good to excellent. In Illinois, the corn crop condition rating dropped 12 points week-over-week, to a mere 36% good to excellent. The national soybean crop condition rating dropped five points from last week, to 54% good to excellent. This figure is 14 points below both last year at this time and the five-year average. In Iowa, the soybean crop condition rating dropped 10 points week-over-week, to 56% good to excellent. In Illinois, the soybean crop condition rating dropped 14 points week-over-week, to 33% good to excellent. This figure is just one point shy of being 30 points below the five-year average for this week of the year. Yesterday, the funds bought 2000 contracts of corn, bought 5000 contracts of soybeans, and bought 3000 contracts of wheat. They are now estimated to be net long 27,855 contracts of corn, net long 97,810 contracts of soybeans, and net short 98,550 contracts of wheat. From a chart perspective, September corn charted a new four-month high overnight, at 6.1250. That level now stands as initial resistance, followed by 6.2175, the six-month high charted on January 18th. Initial support lies at the psychological 6.00 level, followed by 5.50, and then the chart gap from last Monday, 5.2750-5.2975. August soybeans charted a new two-month high overnight, at 14.31. That level now stands as initial resistance, followed by 14.45 and 14.46, the highs from April 18th and 3rd, respectively. Initial support lies at 14.1125, the overnight low, followed by the psychological 14.00 mark, and then 13.50. Opening calls are higher.
Have a great Wednesday.