Grains Mixed Trending Up
MORNING AG OUTLOOK
Grains are mixed. SU is up 9 cents and near 13.85. SMU is near 430.0. BOU is near 64.32. CU is unch and near 4.88. WU is up 5 cents and near 6.45. KWU is up 4 cents and near 7.91. MWU is up 7 cents and near 8.56. US stocks are lower. US Dollar is higher. Crude is lower and near $79. Gold, silver, copper, coffee, cocoa and cotton are lower.
Soybean futures are higher. One private group estimated US soybean yield near 50.5. This could tighten US 2023/24 supply outlook. China Dalian soybean, soymeal, soyoil and palmoil prices were lower. Weekly US soybean export sales are est at 50-400 old crop vs 198 last week, 1,000 to 2,500 vs 544 last week. July India vegoil imports were a record 1.76 mmt. Sunoil up 43 pct vs last month, palmoil up 60 pct but soyoil down 22 pct.
Corn futures are unchanged. CU-CZ spread is out to 12 cents carry. Weekly US corn export sales are est at 150-500 old crop vs 314 last week, 200 to 700 vs 335 last week. Feels like increase carry and lower futures may be trying to find new export demand. One private group estimated US corn yield near 177.0 vs some talk closer to 173.0 and USDA 177.5. This could increase US 2023/24 supply outlook vs what supply bulls were hoping for. Dalian corn futures were sharply higher. Both corn and wheat futures are one headline away from reduced Ukraine exports which could turn futures higher.
Wheat futures are higher. Egypt bought 360 mt Russia wheat near $264 and 60 mt Romania wheat near $263. 1.7 mmt was offered. US Argentina attaché lower the wheat crop to 17 mmt. Argentina remains dry. Canada and EU crop outlook is also on the decline. Canada is dry while N EU is too wet. Both corn and wheat futures are one headline away from reduced Ukraine and Russia exports which could turn futures higher. Weekly US wheat export sales are est at 200-500 old crop vs vs 233 last week.
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.