INGOT Brokers Australia | Commodity report (2017-07-14)

Commodity report (2017-07-14)

Overview

Due to the probability of rain falls in Midwest during next week, the prices of grain futures declined on Wednesday. Also, prices of grain futures pressured by the high production of grains, according to USDA monthly supply and demand report.
For the upcoming 6 to 10 days, along with the hot weather, the weather is expected to be rainy in Dakotas, while the weather is expected to be hot and wet in Midwest for the upcoming 8-14 days.
Exports – USDA, Reuters:
• USDA weekly export sales mln bu (est, Prev wk): corn 17.4 (20.7, 8.5), soybeans 25.1 (15.6, 16.1), wheat 13.1 (14.7, 13.8).
• Japan bought 93,765 metric tons of wheat from the U.S. and Australia. As expected, from the U.S. it bought 10,080 of western white, 17,775 of hard red winter and 35,045 of dark northern spring. Loading is between August 21 and Sept. 20.
• Jordan made no purchase in its tender to buy 100,000 metric tons of optional-origin hard milling wheat. No shipment was reported.
• Algeria is in the market to buy 70,000 metric tons of optional-origin corn. The deadline is Thursday with shipment for July and August.
• 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 prices rose on Wednesday after the news that Nigeria will start to cut its production of oil to support OPEC decision when the output reaches 1.8 million barrel. Nigeria and Lybia increase the production of oil by 393K barrels per a day as they have the exception of cut the production due to the militancy that restricts their production during 2016. U.S crude oil rose by $0.64 at 46.08, while Brent crude oil rose by $0.75 at 48.42.

Wheat

Wheat September contract dropped by 25-1/4 on Wednesday reaching the lowest price since two weeks, pressured by the expectation of rainy weather in next week.
Moreover, The USDA increased their estimated wheat production and wheat output is higher than trade expectation for the year 2016/17, showed by USDA July Report. Also, it reported that the total U.S wheat exports came ion line with expectation at 357,700 tons.
According to CME group, 69 of July wheat delivered as the contract would be expired on Friday.
Meanwhile, Japan decided to buy 93,765 tons of wheat food from the United States and Australia. Japan considered as the six’s largest wheat importer, where the wheat is the second most important staple after rice.
The trading volume on wheat futures was 181,639 on Thursday, higher than Wednesday’s session by 7,922.

Resistance R1
527.25
R2
543.25
R3
552.5
Support S1
502
S2
492.75
S3
476.75

Pivot Point: 518

Corn

September corn futures were lower on Wednesday by 15-3/4 cents at $3.69-3/4, reaching the lowest level since two weeks and new-crop December slid 15-3/4 to $3.83.
Corn crops are going into the pollination phase, as the temperature expected to be lower than this week which is useful for developing corn crops.
According to USDA July report, the estimation of corn harvest will be higher during the year 2016/17, where the corn production in July expected to be 2.325 billion bushels higher than 2.11 in June and higher than analyst’s expectation by 1.144 million bushels.
The trading volume on corn futures was 610,280 on Thursday, higher than Wednesday’s session by 13,810.

Resistance R1
380
R2
389.75
R3
395.5
Support S1
364.5
S2
358.75
S3
349

Pivot Point: 374.25

Soybean

Soybeans ended the session’s lower, where Soybean August contract declined by 45-1/4 at 975.5, while November contract fell by 46.5 at 987.5. the prices of Soybeans pressured by better weather expected in next week.
China signed an agreement to buy 12.53 million tons of soybeans from the United States, this agreement is the second largest agreement between the two countries, but it didn’t give clear insights into the market as the final prices and shipment dates didn’t specify yet.
Soybean export is slightly higher than expected, as cheaper South American Supplies lead to decrease the supplies of grains and soy supplies in U.S.
Weekly export sales on Thursday matched forecasts for old-crop but beat estimates for new-crop.
The trading volume on Soybean futures was 340,070 on Thursday, higher than Wednesday’s session by 28,268.

Resistance R1
1005.84
R2
1033.42
R3
1047.34
Support S1
964.34
S2
950.42
S3
922.84

Pivot Point: 991.92

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