Written Commentary
MORNING AG OUTLOOK
Grains are mixed to higher. US stocks are mixed. US Dollar is lower. Crude is higher. Gold is higher and record high. Brazil is getting rain. Argentina is getting rain. France is drier. Central Midwest weather is warm and dry. US HRW areas are dry, GSI commodity index up and testing 100 DMA.
SOYBEANS
SF is near 10.10. Dalian soybean, palmoil and soyoil were higher. World vegoil prices are higher led by sunoil, sunseed and rapeseed. World soymeal prices are lower. US exporters rushing to ship soybeans before US election and any potential change in policy. Weekly US soybean export sales are est at 1,200-2,400 mt vs 1,702 last week. Higher US crop and US Dollar offset by higher US soybean export demand, higher US crush margins and World vegoil prices. USDA announced 130 mt US beans to China and 259 mt US soybeans to unknown. CME lowered soybean, soymeal and soyoil daily price limits effective November 1 .
CORN
CZ is near 4.20 and challenging 50 and 100 DMA. Dalian corn futures were higher. USDA announced 100 mt US corn to unknown. US corn export prices are competitive vs Ukraine and South America. Brazil futures are higher. EU also has quality issues due to too much rain. Weekly US corn export sales are est at 2,200-3,300 mt vs 2,225 last week. Futures supported by sales above 2.0 mmt, Weekly US ethanol production was up vs last week and last year. Stocks were unchanged vs last week but up vs ly. Low water raising US logistic challenges.
WHEAT
WZ is near 5.79. KWZ is near 5.86. MWZ is near 6.17. Wheat futures pulled by lower east Europe, Australia and Argentina prices and pushed by talk of lower Russia supply and higher Russia prices. There is talk BRICS could open their own grain and currency exchange. There is also talk that Russia could sell wheat directly to 13 countries leaving US out of future sales. Weekly US export sales are est at 350-650 mt vs 504 last week. US export prices are losing ground to Black Sea.
Interested in more futures markets? Explore our Market Dashboards here.
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.
