INGOT Brokers Australia | Commodity report (2017-07-27)

Commodity report (2017-07-27)

Overview

Gains ended higher in the green, with wheat futures’ contracts boosted by drought and dry weather effects on the crops.
Exports – USDA, Reuters:
• Egypt bought 420,000 metric tons of wheat from Russia, Ukraine and Romania. U.S. hard red winter wheat offered, but it was not accepted probably due to its higher price.
• 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 futures expanded their gains for the third straight trading session reaching new highs, boosted by the Energy Information Administration report showing a more than expected decline in the US crude inventories.
US crude inventories fell by 7.2 million barrels beating the expected 2.6 million barrels decline by a wide margin.
West Texas Intermediate September future contract rose to settle higher at 48.70 US Dollars a barrel and Brent September future contract gained to end higher at 50.90 US Dollars a barrel.

Wheat

CBOT Wheat September future contract settled slightly higher at 4.77 US Dollars a bushel after witnessing three consecutive declines but to remain below its 50-day’s moving average.
Wheat future rose as crop’s tour confirmed that drought in the northern Plains severely crimped harvest potential in that region in addition to the dry weather conditions that are weighing on the central and northwestern North Dakota crops.
However, the rain forecast, as well as the ample supply, kept the grains’ gains limited.
CBOT estimated Tuesday’s volume at 180,852, while Monday’s actual volume was 165,141 and open interest in Monday’s lower market decreased by 489 with September’s down 2,494 and December’s up 1,050

Resistance R1
480.25
R2
483.5
R3
486.75
Support S1
473.75
S2
470.5
S3
467.25

Pivot Point: 477

Corn

CBOT Corn September future contract was higher on yesterday’s session’s end at 3.72-1/2 US Dollars recovering from lowest point since the end of June 2017.
Despite the favorable weather forecast and funds net selling activity, Corn future managed to end in the green recovery some of its losses from Tuesday’s trading session.
CBOT estimated Tuesday’s volume at 346,529, Monday’s actual volume was 369,076 and open interest in Monday’s lower market decreased by 29,895 with September’s down 35,961 and December’s up 137.

Resistance R1
374.75
R2
377
R3
381.25
Support S1
368.25
S2
364
S3
361.75

Pivot Point: 370.5

Soybean

CBOT Soybean August future contract gained on Wednesday’s trading session to settle higher 9.88-1/2 US Dollars a bushel.
Soybean futures managed to end higher in the green bouncing off its two week’s low and recouping some of its losses from Tuesday’s trading session.
CBOT estimated Tuesday’s volume at 312,336, Monday’s actual volume was 247,900 and Monday’s open interest in the lower market decreased by 10,826 with August’s down 10,162 and November’s down 4,703.

Resistance R1
995.25
R2
1002
R3
1013
Support S1
977.5
S2
966.5
S3
959.75

Pivot Point: 984.25

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