INGOT Brokers Australia | Commodity report (2017-06-20)

Commodity report (2017-06-20)

Overview

Grains Ended Monday’s session on a mixed note as wheat futures continued its bullish trend, while corn and soybean futures settles lower.
Corn and soybean prices fell amid forecasts of a rainy week ahead could improve farming condition for the crops thus easing traders concerns of dry weather damaging crops. Moreover, USDA’s rating report was seen natural as it left its corn rating unchanged.
On the other hand, Wheat futures continued to rise as prices saw support from USDA’s rating report that showed a reduction in the wheat rating, also leading prices higher are concerns over the dry and hot conditions in some European areas.
The 6- to 10-day outlook is cool and wet for the Midwest and cool and dry for the northern plains.
Regulatory data released on Friday indicated that large speculators trimmed their net short position in Chicago Board of Trade corn futures in the week to June 13.
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 inspections mln bu (estimates, prev week): wheat 27.2 (18.3-25.7, 29.5); corn 48 (35.4-43.3, 42.2), soybeans 10.1 (7.3-14.7, 18.8).
- Jordan retendered for 100,000 metric tons of optional-origin wheat. The tender closes on Tuesday. This is similar to last week’s tender in which Jordan passed on offers.

Oil futures slightly rose on Tuesday to trade around 7 month lows as Analyst believe that the market is focusing on the steady increase of U.S drilling and the fact that it could undermine OPEC-led effort to control the supply overhang and increase oil prices. Prices have been on the decline despite Saudi Energy Minister Khalid al-Falih saying that oil fundamentals are on the right path and price just need to adjust and rebalance.
West Texas Intermediate July future contract rose to trade at 44..35 up from 44.08 US Dollars per barrel and Brent August future contract was marginally higher to trade at 47.09 up from 46.85 US Dollars a barrel.

Wheat

CBOT Wheat July future contract continued to surge on Tuesday after settling higher on Monday. Wheat contract rose by 1.36 percent to settle at $4.73 1/4 a bushel.
Wheat futures rose to reach their highest point since early March, prices were supported by USDA report that was issued on Monday after USDA reduced rating of U.S spring wheat by 4 percent to 41 percent good/excellent down from 45 percent rating last week.
USDA also reduced the rating of U.S winter wheat by 1 percent to 49 percent good/excellent down from a previous rating of 50 percent.
Also supporting price were concerns over dry and hot weather in Europe and Australia.
The CFTC said funds turned net long in hard red winter wheat during the week ended last Tuesday and knocked about 17,500 off their net short position in soft red winter.

Resistance R1
474
R2
480.75
R3
488.5
Support S1
459.5
S2
451.75
S3
445

Pivot Point: 466.25

Corn

CBOT Corn July future contract rose on Tuesday and after closing lower in previous session amid easing concerns over weather conditions. CBOT Corn July future contract rose by 0.53 to trade at $3.77 ¼ a bushel.
Corn prices rose after settling lower on Monday due to forecasts expecting rainfall in most crop areas. However, price rebounded on Tuesday after reports showed funds are turning bullish on the crop and cutting their net short position.
USDA’s rating report on Monday left corn rating unchanged from previous weeks rating of 67 percent of the crop as good to excellent.
The seven-day and 6- to 10-day outlooks favor widespread beneficial rain for the Midwest with total amounts of 2 inches or more over in much of Illinois.

Resistance R1
379.25
R2
383.25
R3
385.25
Support S1
373.25
S2
371.25
S3
367.25

Pivot Point: 377.25

Soybean

CBOT Soybean July future contract rose on Tuesday after ending the previous session in the red. Soybean future rose by 0.48 percent to $9.40 a bushel.
Soybean futures gain some support from positive crushing figures that showed a reading of 149.25 million bushels as per National Oilseed Processors Association.
Also supporting prices was CFTC report that fund reduced their net short position in soybeans by more than 18,000 contracts.
The U.S. Department of Agriculture rated 57 percent of the crop as good/excellent leaving its rating unchanged from previous weeks rating.

Resistance R1
945.41
R2
953.08
R3
958.91
Support S1
931.91
S2
926.08
S3
918.41

Pivot Point: 939.58

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