INGOT Brokers Australia | Commodity report (2017-07-25)

Commodity report (2017-07-25)

Overview

Grains’ futures were mixed on Monday’s trading session’s end but below their Friday’s close due to the ample supply as well as the better harvest prospects and ahead of the US Department of Agriculture crops’ rating report.

Exports – USDA, Reuters:
• USDA reported the sale of 5.3 million bushels of 2017/2018 corn to unknown destinations.
• Weekly export inspections thousand metric tons, (est, prev week): corn 935.26 (750-1,175, 1.112), soybeans 596.4 (200-450, 298), wheat 451.67 (450-650m, 593.3).
• Jordan re-tendered for 100,000 metric tons of wheat after not making a purchase in its previous tender. The current tender closes on July 26.
• Iraq tenders to buy 50,000 metric tons of wheat from the U.S., Canada or Australia. The tender closes on July 31, with offers remaining valid until August 6.
• Bangladesh issued two buying tenders of 50,000 metric tons each of wheat. One tender closes July 26, the other August 6.
Oil future rose on Monday’s trading session to recovering most of their Friday’s losses to settle above their 14-day’s moving average, boosted by the Saudi Arabia’s, the world largest oil exporter, pledge to cut exports next months as well as the expectations from the Russian Energy Minister Alexander Novak that an additional 200,000 barrels could be removed from the market if compliance with OPEC and non-OPEC members deal to cut the global output was at 100 percent.
West Texas Intermediate September future contract rose to settle higher at 46.46 US Dollars a barrel and Brent September future contract gained to end higher at 48.63 US Dollars a barrel thus ending above their 14-day’s moving average.

Wheat

CBOT Wheat September future contract fell for the second straight trading session to settle lower at 4.88 US Dollars a bushel but to remain above the session’s low at 4.82-1/2.
Wheat futures witnessed a significant decline on Monday’s trading session especially after gapping down on the session’s open but to settle above its new lows.
The grain’s decline was led by the expected rain in the northern Plains this week as well as the ample global supply in time where spring wheat is approaching and the progressing harvest of winter wheat.
The US Department of Agriculture rated the US wheat crops at 33 percent good to excellent below the 34 percent a week ago, in its report after Monday’s closed.
CBOT estimated Monday’s volume at 162,242, while Friday’s actual volume was 123,991 and open interest in Friday’s lower market decreased by 2,232 with September’s down 7,692 and December’s up 3,083.

Resistance R1
494.66
R2
501.33
R3
507.41
Support S1
481.91
S2
475.83
S3
469.16

Pivot Point: 488.58

Corn

CBOT Corn September future contract settled higher on Monday’s trading session at 3.76-3/4 US Dollars a bushel.
Despite that corn futures gapped down on Monday’s open they managed to end in the green ahead of US Department of Agriculture crops’ rating report.
The US Department of Agriculture rated the US corn crops at 62 percent good to excellent below the 64 percent a week ago and well below its 76 percent a year ago, in its report after Monday’s closed.
CBOT estimated Monday’s volume at 355,805, while Friday’s actual volume was 405,635 and open interest in Friday’s lower market increased by 33,468 with September’s up 17,910 and December’s up 8,122.

Resistance R1
379
R2
381.25
R3
385.25
Support S1
372.75
S2
368.75
S3
366.5

Pivot Point: 375

Soybean

CBOT Soybean August future contract was slightly lower at 9.97-3/4 US Dollars a bushel after managing to recover from it session’s deep low at 9.85.
Soybean futures were lower in the better weather and harvest prospects thus settling well below their 25-day’s moving average as well as their 10 US Dollars price level.
The US Department of Agriculture rated the US Soybean crops at 57 percent good to excellent below the 61 percent a week ago, in its report after Monday’s closed.
CBOT estimated Monday’s volume at 234,081, while Friday’s actual volume was 219,538 and Friday’s open interest in the lower market decreased by 11,048 with August’s down 17,062 and November’s up 2,754.

Resistance R1
1005.09
R2
1007.67
R3
1011.84
Support S1
998.34
S2
994.17
S3
991.59

Pivot Point: 1000.92

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