INGOT Brokers Australia | Commodity report (2017-06-12)

Commodity report (2017-06-12)

Overview

Grains started the week trading lower after USDA’s monthly crop report indicated bearish figures, prices also dropped due to profit taking and traders increasing their net short positions.
USDA monthly crop report showed that ending stock for soybean increased, while corn endings stocks were unchanged. On the other hand, Wheat showed a slight increase in production.
Hot weather is forecasted for the week slightly limited the drop in prices as concerns that high temperatures might damage crops.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and increased their net short position in soybeans.

Exports – USDA, Reuters:
- Unknown destinations bought 7.4 million bushels 2016/2017 soybeans, USDA said on Friday.
- Jordan seeks to buy 100,000 metric tons of optional-origin milling wheat. The tender closes June 13.
- Results are awaited on Saudi Arabia’s tender 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 rose on Monday after Qatar’s energy minister and OPEC President Mohammed bin Saleh al-Sada declared in a news conference that Qatar is still committed to the OPEC-led production cut deal despite tensions in the region with neighboring countries in the GCC, the minister reaffirmed on Sunday that Qatar is country that honor’s its international commitments.
Prices also saw support after trader’s added new long position after prices fell by roughly 10 percent.
U.S. crude futures rose 0.5 percent to trade at $46.07 a barrel.
Brent crude prices was up 0.5 percent to trade at $48.41 a barrel.

Wheat

CBOT Wheat July future contract tumbled 2.75 percent to trade at $4.43 a bushel
Wheat future lost nearly 2.75 early Monday after gaining 4 percent last week, the rise last week was supported by concerns that hot weather might damage in demand wheat crop. However, USDA’s monthly crop report showed an increase in production thus pressuring prices downward and easing concerns.
USDA raised HRW production 6 million bushels and SRW one million, which lifted overall production to 1.25 billion.
In terms of the weather, forecasts show rain moving through the Dakotas into the weekend, which could help the dry spring wheat there.

Resistance R1
452.16
R2
458.33
R3
462.66
Support S1
441.66
S2
437.33
S3
431.16

Pivot Point: 447.83

Corn

CBOT Corn July future contract was down 1.75 Percent to trade at $3.86 a bushel.
Corn prices dropped as profit-taking prevailed and reports of traders going short on the crop as concerns that high temperatures could damage crops continues to pressure prices.
USDA monthly crop report left 2016/2017 corn ending stocks unchanged at 2.295 billion and next year’s stayed at 2.110 billion.

Resistance R1
391.25
R2
394.75
R3
400
Support S1
382.5
S2
377.25
S3
373.75

Pivot Point: 386

Soybean

CBOT Soybean July future contract dropped 1.75 percent to $9.39-1/4 a bushel.
Soybean futures lost ground on Monday falling by 1.75 percent ahead of profit- taking and USDA’s crop report showing an increase in the crops 2016/2017 ending crop, thus indicating an increase in supple in the market. Funds also reported to have increased net short position on the crop.
USDA raised this year’s ending stocks by 15 million bushels to 450 million, by lowering the crush with the same amount.
Forecast of hot weather also poses a risk on the stock as concerns that weather condition could damage crops.

Resistance R1
945.59
R2
950.17
R3
956.59
Support S1
934.59
S2
928.17
S3
923.59

Pivot Point: 939.17

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