INGOT Brokers AU | Commodity report (2017-07-28)

Commodity report (2017-07-28)

Overview

Wheat, Corn and Soybean futures were higher on Yesterday’s session’s end boosted by the bargain buying and focus on the weather condition in addition to the substantial buying activities.
Exports – USDA, Reuters:
• Weekly export sales, mln bu (estimates): corn 22.8 (15.7-35.4), soybeans 30.6 (14.7-47.8), wheat 18.3 (12.9-20.2)
• USDA reported the sale of nearly 9.7 million bushels of soybeans to unknown destinations. The deal included about 7.3 million of the 2016/2017 crop and about 2.4 million of the 2017/2018 one.
• 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.
Oil future expanded their gains further nearing their eight weeks high over the sharp drop in the US crude stocks as well as the weakening US Dollar. Moreover, earlier this week Saudi Arabia meet with Russia where it pledged to cut it production in the coming month.
West Texas Intermediate September future contract gained to settle higher at 49.13 US Dollars a barrel and Brent September future contract ended higher at 50.50 US Dollars a barrel.

Wheat

CBOT Wheat September future contract marginally rose to settle at 4.78-3/4 US Dollars a bushel while still under its 50-day’s moving average resistance level.
Wheat futures rose to reach new highs before settling down well below their session’s high as the ample global supply as well as to the strong resistance level by its 50-day’s moving average kept their gains limited.
Meanwhile, these gains came after spring wheat yield prospects in central and northwest North Dakota are down significantly from a year ago affected by the dry weather conditions that it witnessed hence raising the focus on the future weather conditions.
Moreover, the larger trader’s buying activity also led the grains’ gains that came after the declines in the commodity prices thus making it more favorable for traders.
Thursday’s estimated volume at 80,769, while Wednesday’s actual volume was 110,631 and open interest in Wednesday’s higher market increased by 1,693 with September’s down 3,390 and December’s up 2,988.

Resistance R1
483.25
R2
487.75
R3
490.75
Support S1
475.75
S2
472.75
S3
468.25

Pivot Point: 480.25

Corn

CBOT Corn September future contract was mostly unchanged at 3.74-1/4 US Dollars after gapping higher on Thursday’s open.
Recouping nearly half of its losses from Tuesday’s sharp decline the commodity ended above its Wednesday’s close over the surge in its weekly exports sales, which came double the previous week’s numbers, and bargain buying that came after commodity’s recent declines.
Thursday’s estimated volume at 230,481, while Wednesday’s actual volume was 389,463 and open interest in Wednesday’s higher market decreased by 3,378 with September’s down 4,457 and December’s down 4,746.

Resistance R1
376.5
R2
378.75
R3
380.5
Support S1
372.5
S2
370.75
S3
368.5

Pivot Point: 374.75

Soybean

CBOT Soybean August future contract ended higher in the green at 9.93-3/4 US Dollars a bushel but to remain below its 14-day’s moving average as well below the session’s high.
The fund large buying activity for the past two days and the bargain buying led the commodity higher despite the decline it is weekly export sales that were in line with expectations.
Estimated Thursday’s volume at 179,997, while Wednesday’s actual volume was 211,634 and Wednesday’s open interest in the higher market decreased by 2,681 with August’s down 7,349 and November’s 3,079.

Resistance R1
1000.41
R2
1007.08
R3
1013.66
Support S1
987.16
S2
980.58
S3
973.91

Pivot Point: 993.83

© 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.