INGOT Brokers AU | Commodity report (2017-06-14)

Commodity report (2017-06-14)

Overview

Wheat and Corn futures rose over the weather concerns and the disappointing US Department of Agriculture’s Crops’ ratings, while Soybean losses were limited due the heavy buying in in Corn and Soybean futures.

Exports – USDA, Reuters:
• Egypt bought 300,000 metric tons of Black Sea wheat Tuesday with Russia, Romania and Ukraine supplying various amounts. For the second straight tender no U.S. wheat was offered.
• Jordan did not buy wheat in its tender for 100,000 metric tons of optional-origin milling wheat.
• Taiwan flour millers bought 92,400 metric tons of U.S. wheat for late July and August shipment. The deal includes dark northern spring, hard red winter and soft white.
• Japan is in the market to buy 162,286 metric tons of wheat from the U.S., Canada and Australia. From the U.S. it seeks 20,501 of western white, 43,125 of hard red winter and 34,910 of dark northern spring for July 21-August 20 loading. Results are due on Thursday.
• Tunisia seeks to buy 92,000 metric tons of wheat and 25,000 of barley from optional origins. The tender concludes on Wednesday. Wheat shipment os August-October from the Black Sea but may differ for other origins. Barley is for July 15-August 5 depending on origin.

Oil futures were mixed during yesterday’s trading session, after OPEC detailed supply cuts around the world while the American Petroleum Institute said crude stocks rose by a surprising 2.8 million barrels for the week to June 9th as oppose to the forecasts of 2.7 million barrels reduction.
OPEC's monthly report showed output from the group rose by 336,000 bpd in May to 32.14 million bpd, led by a recovery in Nigeria and Libya which are exempt from supply cuts.
West Texas Intermediate July future contract was mostly unchanged, settling marginally lower at 45.94 down from 45.99 US Dollars a barrel and Brent August future contract ended higher at 48.70 up from 48.25 US Dollars a barrel, where both futures ended below their session’s high.

Wheat

CBOT Wheat July future contract rallied on yesterday’s trading session, rising by 7.5 cents to settle at 4.44-3/4 US Dollars a bushel recouping its large losses from Monday’s trading session.
Wheat futures gained on the rising concerns of about crops’ health in the dry US Plains as the US Department of Agriculture lowered its condition ratings for the second consecutive week with a larger than expected percentage.
The US Department of Agriculture rated the spring wheat crop at 45 percent good-to-excellent as of June 4th, down 10 percentage points from a week earlier, below the expected 53 percent good-to-excellent rating.
CBOT estimated Tuesday’s volume at 170,318, while Monday’s actual volume was 196,351 and open interest in Monday’s lower market increased by 4,311 with July’s down 7,742 and September’s up 7.650.

Resistance R1
448.34
R2
451.92
R3
457.84
Support S1
438.84
S2
432.92
S3
429.34

Pivot Point: 442.42

Corn

CBOT Corn July future contract was slightly higher by 2 cent to close at 3.81 US Dollar a Bushel recouping some of its losses from Monday’s trading session, but below the session’s high at 3.83-1/2 US Dollars a Bushel.
The gain came due the US Department of Agriculture lowering Corn crops’ rating by 1 point to 67 percent good/excellent, which was in line with expectations, in addition to some weather concerns that forecasts less rain for key Midwest growing areas.
CBOT estimated Tuesday’s volume at 418,622, while Monday’s actual volume was 735,257 and open interest in Monday’s lower market was down 8,924 with July’s down 36,763 and December’s up 3,118.

Resistance R1
383.84
R2
386.67
R3
389.84
Support S1
377.84
S2
374.67
S3
371.84

Pivot Point: 380.67

Soybean

CBOT Soybean July future contract fell for the second straight day dropping 1.75 cents to end at 9.32-1/2 US Dollars a Bushel, way below the session’s high at 9.41-1/4 US Dollars a Bushel.
The weather concerns that forecasts less rain for key Midwest growing areas and the US Department of Agriculture crops’ rating at 66 percent good-to-excellent, which was below the 69 percent good-to-excellent expected and down from 74 percent good-to-excellent a year ago, weighted on the commodity during yesterday’s trading session.
However, the decline was limited as the heavy buying in Corn and Soybean futures lent support for the commodity.
CBOT estimated Tuesday’s volume at 206,273, while Monday’s actual volume was 214,492 and open interest in the lower market increased by 2,792 with July’s down 12,487 and November’s up 11,133.

Resistance R1
938.59
R2
944.67
R3
948.09
Support S1
929.09
S2
925.67
S3
919.59

Pivot Point: 935.17

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