INGOT Brokers Australia | Commodity report (2017-06-07)

Commodity report (2017-06-07)

Overview

Wheat futures rose as the US Department of Agriculture downgraded the spring wheat crops’ rating for the first time in two years, Corn futures gained over the fears that weather condition could spread to the Midwest and Soybean futures had limited gains due the forecast of the favorable weather for the crops next week and the faster than expected planting progress.

Exports – USDA, Reuters:
- Japan seeks to buy 159,610 metric tons of wheat from Australia, United States and Canada. Results are expected on Thursday. From the U.S. it seeks 24,100 of western white, 22,560 of hard red winter and 34,455 of dark northern spring, all for loading July 21-August 20.
- Results are awaited on Iraq’s tender to buy 50,000 metric tons of wheat from the U.S., Canada or Australia. The tender closed June 4, but the offers had to be valid until June 8. From the U.S., Iraq seeks hard red spring, dark northern spring or hard red winter.
- Jordan did not buy wheat in its tender for 100,000 metric tons for mid-October to Nov. 30 shipment. The tender closes June 6.
- Algeria seeks to buy about 50,000 metric tons of optional-origin wheat for August shipment. The deadline for bids is Wednesday.

Oil futures rose for the first time after witnessing declines in five consecutive trading sessions, thus recouping the majority of their losses from Friday’s and Monday’s trading sessions.
The gain was due the rising tensions in the Middle East as well as the technical support level that the futures reached.
West Texas Intermediate July future contract settled higher at 47.96 up from 47.39 US Dollars a barrel and Brent August future contract ended higher at 50.16 up from 49.46 US Dollars a barrel.

Wheat

CBOT Wheat July future contract rose by 5 cent to end above its 50 day’s moving average at 4.35 US Dollars a bushel, but below the session’s two week’s high at 4.40-1/2.
Wheat futures rose after the US Department of Agriculture downgraded the spring wheat crops’ rating for the first time in two years due the hot and dry weather in the northern US Plains, the US Department of Agriculture rated 55 percent of the US spring wheat crops in good to excellent condition down from 62 percent a week earlier and 79 percent a year ago.
The CBOT estimated Tuesday’s volume at 159,772. Monday’s actual volume was 156,054. Open interest in Monday’s flat market increased by 762 with July’s down 9,997 and September’s up 6,033.

Resistance R1
432.5
R2
436.25
R3
439.25
Support S1
425.75
S2
422.75
S3
419

Pivot Point: 429.5

Corn

CBOT Corn July future contract witnessed its highest gain since mid-May 2017, rising 6.25 cent to settled at 3.77 cents a bushel below its highest level since mid-April 2017 that it achieved.
The fears that the weather condition could spread to the Midwest led the corn futures higher despite that commodity funds hold large net short positions in corn futures.
The US Department of Agriculture rated 68 percent of the US crops as good to excellent, up from 65 percent a week earlier.
The CBOT estimated Tuesday’s volume at 440,269. Monday’s actual volume was 351,588. Open interest in Monday’s flat market decreased by 1,542 with July’s down 23,086 and December’s up 12,201.

Resistance R1
381.41
R2
384.58
R3
389.66
Support S1
373.16
S2
368.08
S3
364.91

Pivot Point: 376.33

Soybean

CBOT Soybean July future contract ended marginally higher at 9.23-1/4 up from 9.21-1/4 US Dollars a bushel recouping some of its losses for Monday’s trading session, despite reaching its one week’s high at 9.34 US Dollars per bushel.
Soybean futures’ gains kept limited due the forecast of favorable weather for the crops next week and that soybean planting was 83% in Monday’s progress report compared with the 79% average.
The CBOT estimated Tuesday’s volume at 210,026. Monday’s actual volume was 160,212. Monday’s open interest in the flat market increased by 4,685 with July’s down 9,002 and November’s up 8,979.

Resistance R1
932
R2
939.75
R3
945.75
Support S1
918.25
S2
912.25
S3
904.5

Pivot Point: 926

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