INGOT Brokers Australia | Commodity report (2017-06-22)

Commodity report (2017-06-22)

Overview

Grains across the market were lower over the favorable weather forecasts, technical selling and profit taking.
Thousands of farmers in Paraguay protested on Wednesday against a proposed 15 percent tax on soy, corn and wheat exports that will likely come to a vote in the Senate this week.
Farmers in the world's No. 4 soy exporter gathered in Itapúa, one of the main agricultural areas of the landlocked South American country, complaining the tax would put an end to corn and wheat planting and shrink soy output.
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.
• Bangladesh is in the market for 50,000 metric tons of wheat. The tender closes July 11, with shipment 40 days after deals are signed.

Oil futures fell sharply for the third consecutive trading session to their 10-months low for the West Texas Intermediate and 7-months low for Brent as the US shale production rose thus offsetting OPEC's efforts to cut global stockpiles as well as the rising production in Libya.
Moreover, the news regarding Saudi Arabia’s Crown Prince Mohammed bin Salman replacing 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 August future contract lost 0.85 cents to trade lower at 42.50 US Dollars a barrel and Brent August future contract fell by 1.24 US Dollars to trade at 44.64 US Dollars a barrel.

Wheat

CBOT Wheat July future contract plummeted during yesterday’s trading session witnessing its first decline for the week after falling by 8.25 cent to settle at 4.65 down from 4.73-1/4 US Dollar a bushel, its worst decline in two weeks.
Wheat futures fell after traders assessed the extent to which hot, dry weather would dent a global market laden with record inventories and as they paused to take profits after a rally that lifted the most-active CBOT wheat contract to its highest level in a year
Where the in wheat this month has been fueled by deteriorating conditions for US spring wheat in the northern Plains and concerns over the impact of a heat wave in France, the European Union's top producers.
CBOT estimated Wednesday’s SRW volume at 149,383 while Tuesday’s actual volume was 210,150 and open interest in Tuesday’s higher SRW market increased by 2,920 with July’s down 9,089 and September’s up 5,438.

Resistance R1
471
R2
477
R3
480.5
Support S1
461.5
S2
458
S3
452

Pivot Point: 467.5

Corn

CBOT Corn July future contract ended marginally lower at 3.68-3/4 US Dollars a bushel falling 0.75 cent hitting a fresh three weeks low despite reaching a high of 3.73-1/4 US Dollars a bushel that was above its 50 day’s moving average.
The decline was due the seven-day and 6- to 10-day outlooks of widespread beneficial rain for the Midwest with total amounts of an inch or more in northern Illinois and northeast Iowa in addition to traders technical selling.
CBOT estimated Wednesday’s volume at 327,201 while Tuesday’s actual volume was 450,185 and open interest in Tuesday’s lower market increased by 7,497 with July’s down 17,459 and December’s up 5,212.

Resistance R1
371.91
R2
375.08
R3
376.91
Support S1
366.91
S2
365.08
S3
361.91

Pivot Point: 370.08

Soybean

CBOT Soybean July future contract fell sharply for the second trading session to close below its 14 day’s moving average and near its three week’s low at 9.19 down from 9.28-3/4 US Dollars a bushel.
The wet weather forecasts that is likely to add to market’s short selling and the lake of any significant weather threat in the Midwest pressured the soy futures downward.
CBOT estimated Wednesday’s volume at 216,022 while Tuesday’s actual volume was 225,040 and Tuesday’s open interest in the lower market increased by 8,449 with July’s down 6,286 and November’s increased by 7,604.

Resistance R1
928.66
R2
938.33
R3
944.16
Support S1
913.16
S2
907.33
S3
897.66

Pivot Point: 922.83

© Copyright 2017

The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects Gotinsiders.com current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable.