INGOT Brokers Australia | Commodity report (2017-06-23)

Commodity report (2017-06-23)

Overview

Grains expanded their loses further across the markets with Soybean futures reaching its 17-months lows over the forecast of beneficial weather over the coming two weeks.
Funds were net sellers of all three commodities, unloading an estimated 13,000 corn futures contracts, 12,500 soy contracts and 2,500 wheat contracts, traders said.
Exports – USDA, Reuters:
• USDA weekly export sales mln bu (estimates, prev week): corn 25.7 (25.6-41.3, 24.2), soybeans 4.2 (12.9-27.6, 24) and wheat 19.9 (11-18.4, 13.7).
• Japan bought 135,747 metric tons of wheat from the U.S., Australia and Canada. From the U.S. it bought 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.
• Egypt bought 175,000 metric tons of Romanian and Ukraine wheat. It sought the wheat for July 25-August 5 shipment. No U.S. wheat was offered.
• 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.

Despite the modest rebound in the Oil market from its 10-months low, the sentiment remained bearish as the global over supply continue to persist with Libya and Iraq increasing production and the US rising its shale oil production outweighing OPEC’s and non-OPEC’s members production cut.
Moreover, the news regarding Saudi Arabia’s Crown Prince Mohammed bin Salman replacing his cousin making him the next ruler of the largest oil producing country in the world also added to market uncertainty.
West Texas Intermediate August future contract was marginally higher by 20 cents to settle at 42.77 US Dollars a barrel and Brent August future contract gained 46 cents to end higher at 45.18 US Dollars a barrel.

Wheat

CBOT Wheat July future contract fell for the second straight trading session reaching its one week’s low before recovering to settled well above the session’s low at 4.61-3/4 down from 4.64-1/2 US Dollar a bushel.
Wheat futures retreated from its highest levels since early March 2017 over farmers in state of Kansas continuing to harvest their crop and the eased concerns regarding the low protein content in the winter wheat harvest.
Moreover, Egypt’s court ruling that suspended the new Egyptian food inspection system that allows 0.05 percent of ergot in shipments thus opening the possibility that the quarantine service could restore its zero-tolerance rule weighted heavily on the wheat futures as Egypt is the world’s largest importer.
However, the weekly export sales of 19.9 million bushels topping trade forecasts kept the session’s losses limited.
CBOT estimated Thursday’s SRW volume at 155,196, while Wednesday’s actual volume was 166,010 and open interest in Wednesday’s lower SRW market decreased by 1,803 with July’s down 11,859 and September’s 5,147.

Resistance R1
466
R2
470.25
R3
475.5
Support S1
456.5
S2
451.25
S3
447

Pivot Point: 460.75

Corn

Corn July future contract witnessed another sharp decline, falling for the fourth consecutive trading session to end near its two months low at 3.63 down form 3.68-1/2 US Dollars a bushel.
The beneficial rain for the Midwest and the cooler weather which is expected to aid early-planted corn that will be entering its pollination period led the commodity lower.
CBOT estimated Thursday’s volume at 419,507, while Wednesday’s actual volume was 354,212 and open interest in Wednesday’s weak market decreased by 5,051 with July’s down 22,136 and December’s up 5,268.

Resistance R1
367.25
R2
371.5
R3
373.75
Support S1
360.75
S2
358.5
S3
354.25

Pivot Point: 365

Soybean

CBOT Soybean July future contract plummeted for the third consecutive trading session to close near its 17-months low at 9.03 down from 9.19-1/4 US Dollars a bushel.
The sharp decline in Soybean futures came despite that the CFTC on Friday said funds reduced their net short position in soybeans by more than 18,000 contracts as of last Tuesday, while the largely below expectations weekly export sales of 4.2 million bushels as well as the forecasts of rain in the Midwest this week and the cool weather next week keep the commodity under a heavy downward pressure.
CBOT estimated Thursday’s volume at 313,572, while Wednesday’s actual volume was 237,926 and Wednesday’s open interest in the lower market increased by 8,684 with July’s down 11,847 and November up 9,834.

Resistance R1
915.84
R2
926.92
R3
933.34
Support S1
898.34
S2
891.92
S3
880.84

Pivot Point: 909.42

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