INGOT Brokers Australia | Commodity report (2017-06-21)

Commodity report (2017-06-21)

Overview

Grains closed Tuesday’s session in mixed territories as both Corn and Soybean settled lower, while wheat ended the session in the green.
Corn and soybean prices dropped after forecasts of a wet week ahead could improve farming condition for the crops thus easing traders concerns of dry weather damaging crops.
USDA’s rating report issued on Monday showed there was no change in rating for corn and soybean crop. However USDA reduce its weekly crop rating for wheat.
Corn and soybeans closed in the red as weather forecasts show a number of storms in the Midwest the next few days, with Thursday’s storms expected to stretch from Colorado to the Great Lakes.
Tropical Storm Cindy is forecast to make landfall near Louisiana late on Wednesday and produce heavy rain there. The 6- to 10-day outlook (June 25-29) 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:
- Japan’s issued its weekly tender for 135,747 metric tons of wheat from the U.S., Australia and Canada. From the U.S. it seeks 24,561 tons of western white, 9,690 of hard red winter and 35,710 of dark northern spring. Loading is between July 21 and August 20.
- Jordan cancelled its tender 100,000 metric tons of optional-origin wheat after receiving just one offer.
Oil futures dropped to seven months lows on Tuesday falling by 2 percent as production continue to rise in Libya and the United States pressured price and supported the bullish market sentiment.
News in Saudi Arabia that Crown Prince Mohammed bin Salman had replaced his cousin to make him the next ruler of the largest oil producing country in the world also adding to market uncertainty.
West Texas Intermediate July future contract tumbled to trade at 43.45 falling by 6 cents US Dollars per barrel and Brent August future contract was also lower to trade at 45.92 fell by 10 cents US Dollars a barrel.

Wheat

CBOT Wheat July future contract continued to surge on Tuesday to settle at $4.72-1/4 a bushel.
Wheat futures fell to hit its two week lows, prices fell after closed higher in the previous session.
Weather forecast show dry and hot condition in Europe, mainly in France and Spain thus raising concerns for wheat yields in the area. However, other forecasts show that Germany’s crops is in good conditions.
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.
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
476.84
R2
481.42
R3
488.34
Support S1
465.34
S2
458.42
S3
453.84

Pivot Point: 469.92

Corn

CBOT Corn July future contract fell on Tuesday for the second session in a row after investor concerns eased amid improving weather conditions. CBOT Corn July future contract dropped to end the session at $3.67 3/4 a bushel.
Corn future fell for two straight due to forecasts showing anticipated rainfall in most farming areas.
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 northern Illinois.

Resistance R1
375
R2
380.25
R3
383.25
Support S1
366.75
S2
363.75
S3
358.5

Pivot Point: 372

Soybean

CBOT Soybean July future contract dropped on Tuesday making this its second session in the red. Soybean future fell to trade at $9.27 3/4 a bushel.
Soybean futures saw the drop in prices after getting 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
936.84
R2
945.92
R3
951.34
Support S1
922.34
S2
916.92
S3
907.84

Pivot Point: 931.42

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