Explore Special Offers & White Papers from ADMIS

Lower Start to Grains Outlook


Grains are lower. SU is down 17 cents and near 15.37. SN is near 16.90. SX is near 15.18. SMU is near 406.4. BOU is near 70.51. CU is down 14 cents and near 7.23. CN is near 7.73. CZ is near 7.15. WU is down 10 cents and near 10.36. KWU is down 8 cents and near 11.03. MWU is down 8 cents and near 11.70.

US stocks are higher. US Dollar is lower. Crude is higher. Silver, copper, coffee, cocoa and sugar are higher.

This past week US Midwest was warm and dry. Some feel the US corn, soybean and spring wheat crop needed the drier and warmer conditions. US Midwest 7 day outlook is dry but temps closer to normal through June 30. South 1/3 US will be hot and dry until June 26 when temps moderate. This could stress US Delta soybean crop which will be needed for early soybean vessel loading.  Black Sea and Argentina is dry. EU could see some rain.

Corn futures are lower. Benign US Midwest temp forecast is offering resistance. Domestic basis remains firm as end users continue to try to add to inventory at a time US farmers are unwilling sellers. Key now is Impact dry weather will have on final yields and will funds buy corn against strong seasonal that corn prices make tops in late June and early July. Some crop watchers feel best US corn crops are in IA,WI,KY and IL. Worse MN,ND and NE. CU is below 20 and 50 DMA.

Soybean, soymeal and soyoil futures are lower. Slower China demand for soybean and soyoil and lower Dalian soybean, soymeal, palmoil and soyoil futures is limiting new spec buying. USDA rated the crop last week 70 pct G/E vs 64 average. Brazil farmer was a big seller of soybean last week making room for the 2nd corn crop. This weighed on Brazil soybean prices especially with slower than normal China buying. Some crop watchers feel best US soybean crops are in IA,AR,KY and LA. Worse MN,ND, OH and MO. SU is below 10 and 50 DMA and near 100 DMA support.

Wheat futures are lower. Paris wheat futures are lower. Unfounded talk of higher Ukraine and Russia wheat exports with improving US and Canada HRS weather and World buyers remain reluctant buyers near term in hopes for lower prices and exporters supply replenishment has weighed on futures. Long term World demand is forecasted to exceed supply. WU is near key 100 DMA support.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started