MarketEdge AM Comments
May 30, 2023
(Phil Knuth)
Good Morning. Corn and soybean futures were lower overnight. July corn finished the overnight session off a penny, settling at 6.03. July soybeans were off 16 ¼ cents, settling at 13.21. In the outside markets, as of 7:50am: The US Dollar Index is off 220 points, trading at 103.986. July crude oil is off $1.16, trading at $71.51 per barrel. Precious metals are higher, except silver. Industrial metals are higher, except copper. The Electronic Mini-DJIA is off 2 points, trading at 33,123. Traders apparently are shrugging off the dry weather forecasted for the majority of the Corn Belt for the next ten days or so, focusing instead on the longer term forecast that calls for ample precipitation as well as dismal export demand. In the 11-15 day timeframe, widespread rainfall is forecasted for the Corn Belt. Meanwhile, export demand has been positively atrocious as of late. A gigantic Brazilian soybean crop now available to the world market at a steep discount to US supplies certainly is not helping matters whatsoever. Finally, after quite an impressive recovery rally last week, corn futures were probably due for a bit of a correction from a technical perspective. On Friday, the funds bought 6000 contracts of corn, bought 3000 contracts of soybeans, and bought 5000 contracts of wheat. They are now estimated to be net short 85,650 contracts of corn, net long 4710 contracts of soybeans, and net short 123,050 contracts of wheat. From a chart perspective, July corn finds initial support at the psychological 6.00 level, followed by 5.50, and then the 18-month low charted on May 18th, 5.47. Initial resistance is at Friday’s high, 6.0675, followed by 6.4750, the three-month high charted on April 18th. July soybeans find initial support at the overnight low, 13.1825, followed by the double-low from Friday the 19th and last Monday, 13.0475, and then 12.99, the 10-month low charted on July 22, 2022. Initial resistance is at 13.4350, Friday’s high, followed by 13.50, and then the psychological 14.00 mark. Opening calls are lower.
Have a great Tuesday.
Good Morning. Corn and soybean futures were lower overnight. July corn finished the overnight session off a penny, settling at 6.03. July soybeans were off 16 ¼ cents, settling at 13.21. In the outside markets, as of 7:50am: The US Dollar Index is off 220 points, trading at 103.986. July crude oil is off $1.16, trading at $71.51 per barrel. Precious metals are higher, except silver. Industrial metals are higher, except copper. The Electronic Mini-DJIA is off 2 points, trading at 33,123. Traders apparently are shrugging off the dry weather forecasted for the majority of the Corn Belt for the next ten days or so, focusing instead on the longer term forecast that calls for ample precipitation as well as dismal export demand. In the 11-15 day timeframe, widespread rainfall is forecasted for the Corn Belt. Meanwhile, export demand has been positively atrocious as of late. A gigantic Brazilian soybean crop now available to the world market at a steep discount to US supplies certainly is not helping matters whatsoever. Finally, after quite an impressive recovery rally last week, corn futures were probably due for a bit of a correction from a technical perspective. On Friday, the funds bought 6000 contracts of corn, bought 3000 contracts of soybeans, and bought 5000 contracts of wheat. They are now estimated to be net short 85,650 contracts of corn, net long 4710 contracts of soybeans, and net short 123,050 contracts of wheat. From a chart perspective, July corn finds initial support at the psychological 6.00 level, followed by 5.50, and then the 18-month low charted on May 18th, 5.47. Initial resistance is at Friday’s high, 6.0675, followed by 6.4750, the three-month high charted on April 18th. July soybeans find initial support at the overnight low, 13.1825, followed by the double-low from Friday the 19th and last Monday, 13.0475, and then 12.99, the 10-month low charted on July 22, 2022. Initial resistance is at 13.4350, Friday’s high, followed by 13.50, and then the psychological 14.00 mark. Opening calls are lower.
Have a great Tuesday.