INGOT Brokers Australia | Commodity report (2017-11-06)

Commodity report (2017-11-06)

Overview

Wheat, Corn, and Soybean futures ended Friday in negatives territories to give back gain generated in the previous session amid concerns regard U.S soybean export competitiveness this season. Thus adding pressure on U.S corn and wheat future prices.
In Oil news, oil prices firmed on Friday to levels last seen in 2015 amid support from the OPEC-led supply cuts, as the market is showing signs rebalancing. Furthermore, a drop in US drilling activities also gave additional support that helped lift oil prices higher.
West Texas Intermediate December futures contract jumped by 1.80% on Friday to trade at 55.69 US Dollars a barrel at the close, and Brent January futures contract surged by 2.04% to settle at 62.09 US Dollars a barrel at the close.

Wheat

CBOT Wheat December futures contract edged down on Friday as a large to Iraq help limit losses; Wheat December futures contracts edged down by 0.06% to trade at 4.25-1/2 US Dollars a bushel at the close. Meanwhile, on Monday Wheat December futures rose to trade at 4.29 at 10:00 AM GMT.
Regarding export news, a private wheat exporter said that a sale of 11 million bushels of hard winter wheat for delivery to Iraq, as per USDA.
Regarding Wheat production in Argentina, 2017/2018 production came in at 661.4 billion bushels.
The Commodity Futures Trading Commission's weekly commitments of trade’s report also showed that non-commercial traders, a category that includes hedge funds, increased their net-short position in CBOT wheat.
Initial volume estimates for Friday were 131,077 CBOT contracts, down from Thursday's total of 132,539.

Resistance R1
428.66
R2
431.83
R3
435.16
Support S1
422.16
S2
418.83
S3
415.66

Pivot Point: 425.33

Corn

CBOT Corn December futures contract declined on Friday, pressured lower by losses in soybean prices and rising uncertainty in Brazil; December futures dropped 0.57% to trade at 3.48-1/4 US Dollars a bushel. While on Monday Corn December futures contract was trading at 3.50 US Dollars a bushel at 10:00 AM GMT.
In export news, a sale of 4 million bushels of corn to Mexico and 5.3 million to South Korea for delivery in 2017/2018 were reported to USDA by private exporters.
Regarding Corn production in Argentina, 2017/2018 production came in at 2.008 billion bushels
The Commodity Futures Trading Commission's weekly commitments of traders report showed that speculators increased net short positions by 19,710 totaling 262,022.
Initial volume estimates for Friday were 223,409 contracts, reasonably down from Thursday’s total of 262,022.

Resistance R1
350.16
R2
352.08
R3
353.41
Support S1
346.91
S2
345.58
S3
343.66

Pivot Point: 348.83

Soybean

CBOT Soybean January futures contract prices tumbled on Friday due to various market factor, one being the continuous weakening in the Brazilian peso and rising concerns regarding the competitiveness with the Brazilian crop; CBOT January futures contract tumbled by 1.18% on Friday to trade at 9.87 US Dollars a bushel. Meanwhile on Monday, soybean future was selling at unchanged levels at 487 at 10:00 AM GMT.
Furthermore, Brazil is expected to double soybean exports to China in the last quarter of 2017, to nearly 183.7 million bushels.
Brazil soybean crop is 43% planted for 2017/2018, with estimations projecting that the soybean crop planting at roughly 85.5 million acres.
The Commodity Futures Trading Commission's weekly commitments of traders report showed that speculators increased net short positions by 5,244 totaling 7,308.
Soybean Initial volume estimates for Friday were 181,320 contracts, marginally higher from Thursday’s total of 177,185.

Resistance R1
995.25
R2
1003.5
R3
1008.25
Support S1
982.25
S2
977.5
S3
969.25

Pivot Point: 990.5

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