INGOT Brokers Australia | Commodity report (2017-06-08)

Commodity report (2017-06-08)

Overview

Grains started Thursday’s trading session in positive territory ignoring all the outside economic factors that could harm the markets today, as investors are waiting the “Trio Thursday”, trio refers to the three economic factors happening today which are, the U.K. general elections, European central bank interest rate decision and the testimony of the former FBI director James Coney.
The grain market continuo to see the uptrend in the corn futures, the contract settled near one year high in the previous session and opened for the fifth consecutive session in the green in the early trade today, moreover the wheat and soybean futures also traded higher effected by the dry weather across the U.S Midwest.
The main factor that is deriving the prices of the grains nowadays is the weather, The National Weather Service on Wednesday said the heat index on Saturday could top 100 degrees Fahrenheit for parts of Nebraska and Iowa and 95 degrees elsewhere in Iowa and eastern Nebraska. The areas should stay hot for a few days. Weather forecasts also favor rain for the northern Plains to help the spring wheat. The 6- to 10-day outlook is wet and warm for the Midwest.
Furthermore, commodity funds were net buyers of Corn, Wheat and soybean contracts on yesterday’s trading session.

Exports – USDA, Reuters:
- Algeria bought about 450,000 metric tons of optional-origin wheat for August shipment.
- 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.
- Taiwan flour millers seek to buy 92,400 metric tons of U.S. wheat for late July and August shipment. The tender closes June 13.
- 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.
Oil futures faced a tough week after the political tension in the Middle East and the surprising rise in the U.S. inventories for the first time in 10 weeks.
U.S. crude futures were up 24 cents, or 0.5 percent, at $45.96 a barrel. On Wednesday, they closed down 5.1 percent, or $2.47 a barrel, to the lowest settlement since May 4. Brent crude prices rose 29 cents, or 0.6 percent, to $48.35 a barrel, after falling 4.1 percent in the previous session, also to the lowest since May 4.

Wheat

CBOT Wheat July future contract rose 0.5 percent to trade at $4.46-3/4 a bushel, the contract ended up 2 percent in the previous session to reach the highest price since May 4 at $4.48-3/4 a bushel.
USDA will issue its weekly export sales report today and analysts expect that the numbers will be less than the previous week.
In addition the USDA will issue the Crop production and WASDE reports tomorrow at 16:00 GMT, usually the markets tend to react heavily to those reports.

Resistance R1
441.34
R2
446.42
R3
452.34
Support S1
430.34
S2
424.42
S3
419.34

Pivot Point: 435.42

Corn

CBOT Corn July future contract ended up 0.39 Percent to trade at $3.86-1/4 a bushel after settling up 2 percent in the previous session when the prices reached the highest levels since June 2016.
Certainly there are some concerns about crop conditions in the United States, especially for corn but steep decline in oil prices had offset those gains.
USDA will issue its weekly export sales report today and analysts expect that the numbers will be more than the previous week.

Resistance R1
388.16
R2
391.58
R3
396.41
Support S1
379.91
S2
375.08
S3
371.66

Pivot Point: 383.33

Soybean

CBOT Soybean July future contract added 0.3 percent to $9.33-1/2 a bushel.
The weekly Export Sales report is projected to show 300,000-500,000 MT for old crop sales, with new crop looking at estimates of 50,000-250,000 MT. Soy meal is estimated to be 50,000 MT to 200,000 MT for total sales, with soy oil ranging from 8,000 to 37,000 MT.
Regarding the WASDE and the crop production reports tomorrow, analysts are valuing that the 2016/17 Brazilian crop will be updated to 112.3 MMT in this month’s WASDE report. That would be up from the May projection of 111.6 MMT, as trade guesses ranged from 111 MMT to 113.2 MMT.

Resistance R1
934.41
R2
938.83
R3
943.66
Support S1
925.16
S2
920.33
S3
915.91

Pivot Point: 929.58

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