INGOT Brokers Australia | Commodity report (2017-06-09)

Commodity report (2017-06-09)

Overview

Grains started Friday’s session in mixed territory after influence form ‘’Trio Thursday’’ in the previous session was digested by the market, prospects of hot weather in planting areas drove trader to on a spur of short covering and buying.
The National Weather Service on Thursday showed an expanding hot weather event for the Midwest and central Plains beginning this weekend. The heat index could top 100 degrees Fahrenheit then for parts of Nebraska and much of Iowa. 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.
Commodity funds were net buyers of CBOT corn, soybean and wheat futures on Thursday.

Exports – USDA, Reuters:
- USDA weekly export sales, mln bu, (est, prev week): corn 18.8 (30.5, 21.7), soybeans 14 (20.2, 23), wheat 16.9 (11, 28.7).
- Japan bought 159,610 metric tons of wheat from Australia, United States and Canada. From the U.S. it bought 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.
- Jordan seeks to buy 100,000 metric tons of optional-origin milling wheat. The tender closes June 13.
- Saudi Arabia seeks to buy 770,000 metric tons of optional origin hard wheat for August-October arrival. The tender deadline is Friday.
- 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 sought hard red spring, dark northern spring or hard red winter.

Oil prices continued to fall as risk tension in GCC and unexpected rise in U.S inventories weighed heavily on Oil prices. The rise in U.S outputs continue to undermine OPEC-led effort to curb production and tighten the market in an attempt to rise prices.
U.S. crude futures was down 10 cents to trade at $45.96 a barrel.
Brent crude prices dropped 11 cents to $48.35 a barrel.

Wheat

CBOT Wheat July future contract rose 0.5 percent to trade at $4.49-3/4 a bushel,
Wheat future have gained their biggest one week gain since March 3rd gaining nearly 5 percent for the week ending Friday. The gain in wheat was due to recent forecast indicating dry and hot weather for much of the production areas thus raising concerns of possible production loss.

Resistance R1
453.16
R2
458.83
R3
462.41
Support S1
443.91
S2
440.33
S3
434.66

Pivot Point: 449.58

Corn

CBOT Corn July future contract was down 0.26 Percent to trade at $3.84-3/4 a bushel.
Corn price have increased to more than 3 percent for the week as farmers have a few concerns regarding crop conditions in the United States.
USDA will issue its weekly export sales report today and analysts expect that the numbers will be more than the previous week.

Resistance R1
388.91
R2
393.58
R3
395.91
Support S1
381.91
S2
379.58
S3
374.91

Pivot Point: 386.58

Soybean

CBOT Soybean July future contract added 1.00 percent to $9.39 a bushel.
Soybean bean futures have seen its biggest weekly gain since Feb 10th after rising 2 percent for the week.
Concerns about the hot weather helped drive the market, even as weekly export sales were down for the week and fell short of trade forecasts.
Also supporting price were report that the soybean import to china have increased by 25 percent compared to year ago.

Resistance R1
944.16
R2
951.08
R3
957.91
Support S1
930.41
S2
923.58
S3
916.66

Pivot Point: 937.33

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