INGOT Brokers Australia | Commodity report (2017-11-02)

Commodity report (2017-11-02)

Overview

Wheat, Corn, and Soybean futures advanced on Wednesday expanded their lifted bullish USDA report and increased demand for the three crops.
In term of Weather news, some parts of the Plains and Midwest have snow already on the ground, including Nebraska, Kansas, the Dakotas, Minnesota, and Wisconsin. With additional snow expected in some of these areas in the coming days.
In Oil news, oil prices eased on Wednesday as investors locked in their profits after oil prices advanced for five consecutive sessions, as the high level of compliance by OPEC and non-OPEC members in addition to Russia and Saudi Arabia’s support for expanding the cuts of their crude Oil productions has led Oil futures prices higher recently. Meanwhile, U.S crude oil inventories fell by 2.4 million barrel on Wednesday according to EIA, thus adding further optimism to market participants that current market oversupply in on track to rebalancing.
West Texas Intermediate December futures contract ended Wednesday session 0.64% lower to trade at 54.26 US Dollars a barrel, and Brent January futures contract declined by 0.85% to settle at 60.46 US Dollars a barrel.

Wheat

CBOT Wheat December futures contract edged up on Wednesday after falling for five consecutive sessions; Wheat December futures contract was trading slightly up at 4.18-1/2 US Dollars a bushel at the close. Meanwhile, on Thursday Wheat December futures rose to trade at 4.19-3/4 at 10:00 AM GMT.
During yesterday’s trading session, Wheat futures ended its 5-day slump as significant Russian export helped lift prices higher.
Meanwhile, before USDA’s weekly export sales report, analysts are estimating wheat exports sales to be between 9.2 million bushels and 16.5 million bushels.
Initial volume estimates for Wednesday were 118,521 CBOT contracts, slightly down from Tuesday’s total of 168,147.

Resistance R1
421.25
R2
424
R3
426.5
Support S1
416
S2
413.5
S3
410.75

Pivot Point: 418.75

Corn

CBOT Corn December futures contract rose on Wednesday lifted by bargain buying to trade at 3.48-1/4 US Dollars a bushel. While on Thursday Corn December futures contract was trading at 3.48-1/2 US Dollars a bushel at 10:00 AM GMT.
The EIA released ethanol latest production data; the report showed that production volume was up to 1.056 million barrels per day- 18,000 barrels higher from a week ago.
Furthermore, Ethanol plants enhanced productivity in September and used 448 million bushels of corn, with USDA now projecting total usage of 5.475 billion bushels in 2017.
Ahead of the weekly export sales report by USDA, Analysts are expecting corn exports to be at 31.5 million bushels and 44.3 million bushels.
Initial volume estimates for Wednesday were 350,574 contracts, up from Tuesday’s total of 245,003.

Resistance R1
349.75
R2
351.25
R3
353.5
Support S1
346
S2
343.75
S3
342.25

Pivot Point: 347.5

Soybean

CBOT Soybean January futures contract ended yesterday’s trading session on higher notes as the unfavorable farming weather in Brazil supported prices higher, and the possibility of another downgrade to U.S yields; CBOT January futures contract surged on Wednesday to trade 9.91-1/4 US Dollars a bushel. Meanwhile, on Thursday, Soybean January futures contract were trading higher at 9.96-3/4 US Dollars a bushel at 10:00 AM GMT.
Analysts are estimations ahead of USDA Weekly export sales report, shows that soybean export sales will range between 53.3 million bushels and 69.8 million bushels
Moreover, Soybean total crush for September came in at 145.4 million bushels in line with forecasts and is 5% higher from a year ago.
Soybean Initial volume estimates for Wednesday were 164,014 contracts, up from Tuesday’s total of 162,880.

Resistance R1
996.09
R2
1000.92
R3
1007.09
Support S1
985.09
S2
978.92
S3
974.09

Pivot Point: 989.92

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