MarketEdge AM Comments
Feb 27, 2024
(Phil Knuth)
Good Morning. Corn and soybean futures were higher overnight. March corn finished the overnight session up a penny and a quarter, settling at 4.0825. March soybeans were up 12 ½ cents, settling at 11.4850. In the outside markets, as of 7:50am: The US Dollar Index is off 60 points, trading at 103.766. April crude oil is off 17 cents, trading at $77.41 per barrel. Precious metals are all higher. Industrial metals are higher, except tin. The Electronic Mini-DJIA is off 29 points, trading at 39,087. The recovery rally that began yesterday continued overnight. It was certainly a nice change of pace to see some follow-through, for once. Hopefully, futures can maintain an upward trajectory throughout the trading session today, however, there is still plenty of bearish sentiment keeping a lid on upside potential. Fundamental support for yesterday’s turnaround in futures was limited. It was a classic short-covering “bounce” that had been expected for quite some time. Some fundamental support for the rally in corn futures came from the weekly Export Inspections Report at 10am. Weekly corn export inspections were reported at 48.9 million bushels. This figure is a marketing-year high and is 23.3 million bushels higher than the comparable week last year. Cumulative corn export inspections for the current marketing year now total 767.5 million bushels. This figure is over 200 million bushels ahead of last year’s pace and is on track to meet USDA’s current export forecast. Yesterday, the funds bought 6000 contracts of corn, bought 2000 contracts of soybeans, and bought 2000 contracts of wheat. They are now estimated to be net short 338,585 contracts of corn, net short 144,675 contracts of soybeans, and net short 73,320 contracts of wheat. From a chart perspective, March corn faces initial resistance at the overnight high, 4.10, followed by the double-high charted one week ago and on Friday, February 16th, 4.2150. Initial support lies at 4.0625, the overnight low, followed by the psychological 4.00 level, and then the new contract low charted yesterday, 3.9450. March soybeans face initial resistance at the overnight high, 11.5125, followed by 11.8850, last week’s high charted on Tuesday, and then the psychological 12.00 mark. Initial support lies at 11.3450, the overnight low, followed by the new contract low charted yesterday, 11.2475, and then the psychological 11.00 mark. Opening calls are higher.
Have a great Tuesday.
Good Morning. Corn and soybean futures were higher overnight. March corn finished the overnight session up a penny and a quarter, settling at 4.0825. March soybeans were up 12 ½ cents, settling at 11.4850. In the outside markets, as of 7:50am: The US Dollar Index is off 60 points, trading at 103.766. April crude oil is off 17 cents, trading at $77.41 per barrel. Precious metals are all higher. Industrial metals are higher, except tin. The Electronic Mini-DJIA is off 29 points, trading at 39,087. The recovery rally that began yesterday continued overnight. It was certainly a nice change of pace to see some follow-through, for once. Hopefully, futures can maintain an upward trajectory throughout the trading session today, however, there is still plenty of bearish sentiment keeping a lid on upside potential. Fundamental support for yesterday’s turnaround in futures was limited. It was a classic short-covering “bounce” that had been expected for quite some time. Some fundamental support for the rally in corn futures came from the weekly Export Inspections Report at 10am. Weekly corn export inspections were reported at 48.9 million bushels. This figure is a marketing-year high and is 23.3 million bushels higher than the comparable week last year. Cumulative corn export inspections for the current marketing year now total 767.5 million bushels. This figure is over 200 million bushels ahead of last year’s pace and is on track to meet USDA’s current export forecast. Yesterday, the funds bought 6000 contracts of corn, bought 2000 contracts of soybeans, and bought 2000 contracts of wheat. They are now estimated to be net short 338,585 contracts of corn, net short 144,675 contracts of soybeans, and net short 73,320 contracts of wheat. From a chart perspective, March corn faces initial resistance at the overnight high, 4.10, followed by the double-high charted one week ago and on Friday, February 16th, 4.2150. Initial support lies at 4.0625, the overnight low, followed by the psychological 4.00 level, and then the new contract low charted yesterday, 3.9450. March soybeans face initial resistance at the overnight high, 11.5125, followed by 11.8850, last week’s high charted on Tuesday, and then the psychological 12.00 mark. Initial support lies at 11.3450, the overnight low, followed by the new contract low charted yesterday, 11.2475, and then the psychological 11.00 mark. Opening calls are higher.
Have a great Tuesday.