Written Commentary
MORNING AG OUTLOOK
Grains are mixed. SN is up 6 cents and near 14.09. SMN is near 428.5. BON is near 50.63. CN is down 3 cents and near 5.78. WN is unch and near 6.30. KWN is up 2 cents and near 7.68. MWN is up 4 cents and near 7.89. US stocks are lower. US Dollar is higher. Crude is lower and below $75. Gold, silver, copper, coffee, cocoa and sugar are lower.
Corn futures continues to slide lower. Traders are becoming concern that China is done buying US corn and could cancel additional open unshipped sales. US corn export basis is also lower. Weekly US export sales were lower than expected. Some feel US corn exports could drop 200 mil bu from USDA guess. USDA announced that upper Miss river will be closed for weeks due to flooding. Some feel US Midwest will be drier but warmer temps have been delayed for a week. Argentina corn harvest is near 18 pct with talk could be down to closer to 29 mmt vs USDA 36. Brazil farmer is selling corn due to lack of storage. There were no deliveries. Managed funds are now net short corn futures.
Soybean futures are a little higher and technically oversold. Dalian soybean and soyoil futures were lower. Soymeal higher. US weekly export sales were lower than expected. There remains no new soyoil sales. China bought Brazil soybean yesterday. Argentina harvest is near 33 pct with crop est closer to low 20 mmt vs USDA 27. Soymeal futures are trying to find support from lower Argentina crop. Brazil soymeal is cheaper than Argentina and US. Increase demand for Brazil soymeal will test their export logistics. There were no soybean and soymeal deliveries but 199 soyoil.
SW US rains missed some dry areas. Rains may also trigger some farmer plowing up wheat and planting sorghum. US north plains weather is cool which is slowing HRS planting and could increase prevent plant acres. US SRW fob export price is lower than Russia “floor” price near $275. US wheat export sales remain slow. MWK dropped below KWK. High EU stocks continues to weigh on Matif futures. WK deliveries were 854.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
