INGOT Brokers Australia | Commodity report (2017-06-19)

Commodity report (2017-06-19)

Overview

Grain traded higher on Friday after rebounding from a drop in the previous session, Wheat futures saw an increase in prices amid concerns over dry weather might result in crop shortage globally, Corn futures also rose over weather concerns. Meanwhile, soybean futures saw support from better than expected crushing data.
In terms of Weather, The seven-day outlook remains wet for the Midwest with rain totals of 2 inches or more for Iowa and northern Illinois and about an inch elsewhere. However the latest 6- to 10-day outlook (June 20-24) is drier for the western Midwest and Plains. Dry weather in Kansas would help the hard red winter wheat harvest.
Large speculators trimmed their net short position in Chicago Board of Trade corn futures in the week to June 13, regulatory data released on Friday showed.
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 cut their net short position in soybeans.

Exports – USDA, Reuters:
- USDA weekly export sales mln bu (est, prev wk): corn 24.2 (31.5, 18.8), soybeans 24 (20.2, 14), wheat 13.7 (16.5, 16.9).
- Japan bought 162,286 metric tons of wheat from the U.S., Canada and Australia. From the U.S. it bought 20,501 of western white, 43,125 of hard red winter and 34,910 of dark northern spring for July 21-August 20 loading.
- A South Korean feed group bought about 65,000 metric tons of optional-origin corn on Thursday for arrival about Oct. 5.
- A South Korea corn processing group bought 60,000 metric tons of optional-origin corn for arrival around Sept. 25.
- Pakistan is said to have bought about 60,000 metric tons of soybeans recently, which could be sources from the U.S. or Brazil. Shipment would be for Nov. 20 to Dec. 20.
Oil futures continued to drop on Monday after slightly rebounding in Friday’s session, oil price were pressure by the unceasing expansion in U.S drilling, the continuous drilling has added to an already over supplied market and has limited OPEE’s efforts to control the supply overhang.
Moreover, Analysts suggest that main driver behind the fall in price is continuous rise in U.S drilling.
West Texas Intermediate July future contract fell to settle at 44.54 down from 44.71 US Dollars per barrel and Brent August future contract was marginally lower to close at 47.24 down from 47.30 US Dollars a barrel.

Wheat

CBOT Wheat July future contract surged on Friday making it the biggest gainer among other grains in Friday’s session to settle to at its highest point since early March. Wheat contract rose by 1.6 percent to settle at $4.65 a bushel.
Wheat futures rose to reach their highest point since early March, price were support over talk of dry weather damaging crop and damaging yields. Furthermore, wheat price saw support from worries regarding Black sea region crops resulted in a surge in prices.
In terms of weather, forecasts anticipate hot, dry conditions in the northern Plains. Maps favor some rain the next few days for the spring wheat while the 6- to 10-day outlook is dry.

Resistance R1
470
R2
475
R3
482
Support S1
458
S2
451
S3
446

Pivot Point: 463

Corn

CBOT Corn July future contract rose recovering from its two week’s low to close at 3.79 up from 3.75 US Dollars a Bushel and above its 50 day’s moving average.
Corn prices rose despite forecasts expecting rainfall in most crop areas, price saw support from gain in wheat.
The seven-day forecast that has widespread beneficial rain for the Midwest with total amounts of 2 inches or more over in Iowa and northern Illinois. In addition storms are expected Friday and Saturday for Iowa and on Saturday for much of Illinois.

Resistance R1
386.09
R2
388.17
R3
392.09
Support S1
380.09
S2
376.17
S3
374.09

Pivot Point: 382.17

Soybean

CBOT Soybean July future contract surged amid positive crushing figures to at $9.44 a bushel, 938-3/4 a bushel to settle at its highest point since mid-May.
Soybean were support by upbeat crushing figures that showed a reading of 149.25 million bushels as per National Oilseed Processors Association. Moreover, beneficial expected rain along with upbeat crush is number is expected to the crops rating from Monday’s 66 percent good/excellent ratings.
The CBOT estimated Thursday’s volume at 197,434. Wednesday’s actual volume was 174,348. Wednesday’s open interest in the flat market increased by 2,889 with July’s down 5,423 and November’s up 3,084.

Resistance R1
943.5
R2
947.75
R3
953.5
Support S1
933.5
S2
927.75
S3
923.5

Pivot Point: 937.75

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