INGOT Brokers Australia | Commodity report (2017-08-01)

Commodity report (2017-08-01)

Overview

Wheat, Corn, and Soybean futures started the week on lower note’s to end Monday’s session in negative territory. Agricultural commodity futures were weighed down by forecasts of mild weather in the through out the U.S, as scattered rain and cool weather conditions are expected to help with corn and soybean seeding development.
Corn futures saw the cool and wet weather forecast offset support from rising demand after a big export sale to Colombia was announced. Furthermore, USDA crop condition report was released later in the day to shows an improvement in Soybean crop conditions, while corn and wheat came below market expectations and lower by 2% compared to previous weeks report.
The 6 to 10-day weather outlook shows that cool and wet condition is expected for most the United States. Meanwhile, the northern plains are projected to be dry.
Exports – USDA, Reuters:
• Weekly export inspections mln bu (est, prev week): corn 38.9 (33-41, 38.7), soybeans 17.5 (12-20, 23.6), wheat 21.3 (13-21, 18.5).
• Colombia bought 5.9 million bushels of 2017/2018 corn.
• 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 futures continued to advance on Tuesday to trade above their two-month highs; Oil price has been rising recently, bolstered by increased demand and the supply cut deal led by OPEC. Furthermore, the recent turmoil in Venezuela has also lifted oil price with investors eyeing the aftermath of the vote in Venezuela as the United States might impose sanctions on the oil producing country, and OPEC-member.
West Texas Intermediate September future contract gained to settle higher at 50.30 US Dollars a barrel, and Brent September future contract ended higher at 52.58 US Dollars a barrel.

Wheat

CBOT Wheat September future contract settled lower at 4.73-3/4 US Dollars a bushel to remain under 50-day’s moving average resistance level.
Wheat futures ended Monday’s session lower after funds are becoming cautiously bearish towards the commodity, also weighing on prices is the ample global supply.
Furthermore, USDA conditions report released late Monday rated 31 percent of the U.S. spring crop was good to excellent down by 2 percent compared to previous week’s rating.
Regarding weather forecasts, cool and wet condition expected in northern plains this week and dry conditions expect the week after.
CBOT’s estimated Monday’s volume at 85,548. Friday’s actual volume was 88,324. Open interest in Friday’s firm SRW market increased by 2,297 with September’s down 811 and December’s up 3,347. KC HRW wheat’s actual volume on Friday rose by about 11,000 to 44,292 with open interest up 2,022.

Resistance R1
478.4
R2
483.45
R3
486.9
Support S1
469.9
S2
466.45
S3
461.4

Pivot Point: 474.95

Corn

CBOT Corn September future contract traded in lower 3.70-3/4 US Dollars.
Corn futures closed in the red on Monday, although the increased demand from Colombia for new-crop was not enough to lift prices as wet and moist forecasts in most the U.S pressured prices lower.
USDA condition report lowered Corn crop rating by 2 percent to 61% good/excellent.
CBOT’s estimated volume for Monday was 217,589. Friday’s actual volume was 165,993 Open interest in Friday’s flat market increased by 11,153 with September’s up 1,457 and December’s up 5,269.
CBOT’s estimated volume for Monday was 154,597. Friday’s actual volume was 190,218, and its open interest in the higher market decreased by 716 with August’s down 9,645 and November’s up 6,465.

Resistance R1
372.66
R2
374.58
R3
377.16
Support S1
368.16
S2
365.58
S3
363.66

Pivot Point: 370.08

Soybean

CBOT Soybean September future contracts edged lower to settle at 9.98 US Dollars a bushel on Monday but remained below its 14-day’s moving average as well below the session’s high.
Soybean futures suffer after an already long hot summer has raised concerns on the crop condition among investors.
USDA condition report said the 59 percent of soybean crops rated good to excellent up by 2 percent from the previous week.
Soybean found support from large buying activity by funds as of late, and the bargain buying lifted soybean prices higher despite a drop in weekly export sales that were in line with expectations.
CBOT’s estimated volume for Monday was 154,597. Friday’s actual volume was 190,218, and its open interest in the higher market decreased by 716 with August’s down 9,645 and November’s up 6,465.

Resistance R1
1003.91
R2
1009.83
R3
1018.16
Support S1
989.66
S2
981.33
S3
975.41

Pivot Point: 995.58

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