INGOT Brokers Australia | Commodity report (2017-06-05)

Commodity report (2017-06-05)

Overview

The grain market took a breath in the early trading session on Monday after the strong forecasts that the U.S. production could be hit by a hot and dry weather, also the strong demand for soybeans give the market some support.
Exports – USDA, Reuters:
- USDA weekly export sales, mln bu (estimates, prev week): corn 21.7 (25.6, 18), soybeans 23 (13.8, 17.4), wheat 28.7 (12.9, 7.4).
- USDA said Spain bought 7.35 million bushels of soybeans, which included 2.57 million old crop and 4.78 million new-crop. The new-crop business was previously reported as sold to unknown destinations.
- A South Korea feed maker bought 138,000 metric tons of corn and 64,000 of feed wheat from optional origins. The corn was for arrival about Oct. 17 and the wheat for arrival around Nov. 17.
- Iraq seeks to buy 50,000 metric tons of wheat from the U.S., Canada or Australia. The tender closes June 4, with offers valid until June 8. From the U.S., Iraq seeks hard red spring, dark northern spring or hard red winter.
- Jordan seeks to buy 100,000 metric tons of optional-origin hard wheat for mid-October to Nov. 30 shipment. The tender closes June 6.
Oil prices gained more than one percent in the early trade on Monday, after closing in the red zone for three consecutive sessions, the gains were due to the surprising tension in the Middle East as the top crude oil exporter Saudi Arabia and three other countries cut off ties with Qatar.
Saudi Arabia, Egypt, Bahrain, and the United Arab Emirates they cut ties with Qatar, blaming it of interfering in their internal affairs and backing terrorism.

Wheat

CBOT Wheat July future contract settled is trading higher at 4.31-3/4 after having closed up 0.1 percent on Friday.
Wheat was supported by forecasts of warm and dry weather in the northern U.S. Plains, potentially stressing newly planted spring wheat, and as excessive rains have swamped fields in the southern Plains and the Midwest.
Moreover, the U.S. Department of Agriculture has rated 62 percent of the U.S. spring wheat crop as good to excellent, down significantly from 79 percent a year earlier.

Resistance R1
432.91
R2
436.58
R3
442.41
Support S1
423.41
S2
417.58
S3
413.91

Pivot Point: 427.08

Corn

CBOT Corn July future contract advanced 0.3 percent to $3.73-3/4 a bushel, having firmed 1 percent on Friday.
Large speculators increased their net short position in CBOT corn futures in the week to May 30, regulatory data released on Friday showed.
INTL FCStone projects Brazilian corn production will rise to 97.63 MMT, up 1.48 MMT from their previous estimate helped by larger second crop production.

Resistance R1
374.41
R2
376.83
R3
379.41
Support S1
369.41
S2
366.83
S3
364.41

Pivot Point: 371.83

Soybean

CBOT Soybean July future contract rose 0.2 percent to $9.23 a bushel and corn advanced 0.3 percent to $3.74 a bushel.
Soybean futures witnessed some support in the early trade on Monday after the heavy demand which was seen in the weekly USDA export sales report last week which came above analyst expectations. However the gains were trimmed by the strong record of South American supplies.
Informa Economics, a private analytics firm, on Friday raised its estimate of Brazil's 2016/17 soybean harvest to 114.5 million tonnes, from 113 million last month, trade sources said. The firm also raised its forecast of Argentina's 2016/17 soybean crop to 58 million tonnes, from 56.8 Million in May.

Resistance R1
927.41
R2
931.83
R3
940.16
Support S1
914.66
S2
906.33
S3
901.91

Pivot Point: 919.08

© Copyright 2017

The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects Gotinsiders.com current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable.