INGOT Brokers Australia | Commodity report (2017-11-03)

Commodity report (2017-11-03)

Overview

Wheat, Corn, and Soybean futures advanced on Thursday to recover some of the losses incurred in past sessions; prices found support from positive export news and bargain buying.
In term of Weather news, some parts of the Corn Belt and upper Midwest are expecting precipitation in the upcoming few days.
In Oil news, oil prices firmed on Thursday amid support from OPEC-led supply cuts tightening the market and a drop in US crude inventories; prices also rose on stronger global demand.Moreover, U.S crude oil inventories fell by 2.4 million barrel on Wednesday according to EIA.
West Texas Intermediate December futures contract ended Thursday session 0.87% higher to trade at 54.72 US Dollars a barrel, and Brent January futures contract advanced by 0.50% to settle at 60.74 US Dollars a barrel.

Wheat

CBOT Wheat December futures contract rose on technical buying and short covering on Thursday; Wheat December futures contracts surged by 1.92% to trade at 4.25-3/4 US Dollars a bushel at the close. Meanwhile, on Thursday Wheat December futures rose to trade at 4.26-3/4 at 09:00 AM GMT.
Regarding USDA’s export sales report, Wheat export for the week ending October 26th came in at 12.8 million bushels; the figure is still below USDA’s forecast, now set at 13.4 million bushels per week.
Eygpt has purchased 134.7 million bushels of wheat between July of October 20th. While in Europe, soft wheat exports fell by 25% between June and October compared to a year ago.
An Iraqi official said that Iraq purchased nearly 16.5 million bushels of U.S wheat. On the other hand, Jordan declined to make a purchase in its tender of 3.7 million bushels of Milling Wheat, although the country bought 4.6 million bushels of barley.
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 Thursday were 132,539 CBOT contracts, up from Wednesday's total of 118,520.

Resistance R1
428.59
R2
431.42
R3
436.84
Support S1
420.34
S2
414.92
S3
412.09

Pivot Point: 423.17

Corn

CBOT Corn December futures contract rose on Thursday after the crop found support from a massive sale to Mexico and bargain buyers; December futures jumped by 0.79% to trade at 3.50-1/2 US Dollars a bushel. While on Thursday Corn December futures contract was trading at 3.50-1/4 US Dollars a bushel at 09:00 AM GMT.
Looking at USDA’s export sales report, Corn export sales came in at 35.5 million bushels in total sales for the week ending October 26, falling short of estimates of 37.4 million bushels. Meanwhile, Corn export shipment came in at 23.5 million bushels for the week.
In export news, Mexico bought 53.4 million bushels of corn from private exporters according to USDA.
Initial volume estimates for Thursday were 245,003 contracts, significantly down from Wednesday’s total of 348,931.

Resistance R1
352.25
R2
354
R3
356.25
Support S1
348.25
S2
346
S3
344.25

Pivot Point: 350

Soybean

CBOT Soybean January futures contract ended yesterday’s trading session on higher notes bolstered by bullish export news and concerns of a potentially smaller than expected harvest in the United States; CBOT January futures contract surged by 0.90% on Thursday to trade at 9.99-1/4 US Dollars a bushel. Meanwhile, on Thursday, Soybean January futures contracts were trading slightly lower at 9.97 US Dollars a bushel at 09:00 AM GMT.
Looking at USDA’s export sales report, Soybean export sales totaled 72.8 million bushels for the week ending October 26, beating trade estimates of 60.6 million bushels. Meanwhile, Soybean export shipment came in at 98.8 million bushels for the week, with China taking the biggest chunk of the pie with 77.5 million bushels.
Soybean Initial volume estimates for Thursday were 177,734 contracts, up from Wednesday’s total of 164,104.

Resistance R1
1002.91
R2
1006.58
R3
1012.91
Support S1
992.91
S2
986.58
S3
982.91

Pivot Point: 996.58

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