by ADMIS Research Team
Overnight trade has SRW down roughly down roughly 5 cents, HRW down 4; HRS Wheat down 1, Corn is down 2 cents; Soybeans up 3, Soymeal up $1.00, and Soyoil down 15 points.
For the week, SRW Wheat prices were down roughly 3 cents; HRW down 2; HRS down 6; Corn was down 6 cents; Soybeans down 3 cents; Soymeal down $1.00, and; Soyoil down 115 points;
Chinese Ag futures (Sep) settled down 11 yuan in Soybeans, up 17 in Corn, up 4 in Soymeal, down 92 in Soyoil, and down 86 in Palm Oil.
Malaysian palm oil prices were down 55 ringgit at 2,020 (basis July) at midsession following soy/crude oil weakness.
U.S. Weather Forecast
U.S. crop areas will see restricted field progress during this workweek in the Midwest because of relatively frequent rainfall and mild temperatures that will limit drying time; a brief break in rainfall late this week and through the weekend will allow some fieldwork to take place, but it will be slow until the ground firms; next week’s weather will trend a little wetter once again after a few days of drying and that will provide only a couple of days with better drying conditions before rain resumes once again
The Delta and southeastern states will receive rain a little less frequently and less significantly with warm temperatures present to support better drying conditions between rain events and more field progress
Weather in the Plains should be well mixed to support winter wheat development and the planting and emergence of summer crops.
South America Weather Forecast
There will be some scattered showers and thunderstorms in Brazil’s Safrinha corn areas, but unsure about the significance of the rainfall events
Argentina over the coming week to ten days has periodic rainfall, some of which may be heavy; local flooding might be possible for a short period of time; frost and freezes may follow the rain event May 3-5 in southern parts of the nation
Black Sea/Europe region
The bottom line for Europe and the western CIS over the next ten days is one of relief to “some” of the dryness that has plagued these areas for a while
The player sheet had funds net sellers of 12,000 contracts of SRW Wheat; net sold 16,000 Corn; net 7,000 contracts of Soybeans; net sold 2,000 Soymeal, and; sold 6,000 Soyoil.
We estimate Managed Money net long 10,000 contracts of SRW Wheat; net short 156,000 Corn; net short 2,000 in Soybeans; net short 5,000 lots of Soymeal, and; net short 15,000 Soyoil.
Preliminary Open Interest saw SRW Wheat futures down roughly 9,300 contracts; HRW Wheat down 3,700; Corn down 10,200; Soybeans down 12,500 contracts; Soymeal up 2,700 lots, and; Soyoil up 4,800.
There were no changes in registrations—Registrations total 11 contracts for SRW Wheat; ZERO Oats; Corn 3; Soybeans 1; Soyoil 2,668 lots; Soymeal 564; Rice 267; HRW Wheat 10, and; HRS Wheat 821 contracts.
TODAY—WEEKLY EXPORT INSPECS—WEEKLY CROP PROGRESS, CONDITIONS AFTER THE CLOSE—-
Tender Activity—Saudi Arabia bought 715,000t optional-origin wheat—The U.N. bought 20,000t Ukrainian wheat—S. Korea seeks 40,000t Indian rapeseed meal—
U.S. Trade Representative Robert Lighthizer on Friday said he has notified Congress that the new U.S.-Mexico-Canada trade agreement will take effect on July 1, a month later than initially proposed; Lighthizer said both Mexico and Canada had taken measures necessary to comply with their commitments under the U.S.-Mexico-Canada Agreement (USMCA), which replaces the 26-year-old North American Free Trade Agreement (NAFTA).
Speculators increased their pessimism toward Chicago-traded corn last week as unprecedented disruptions in demand had front-month futures dangerously close to a sub $3-per-bushel price, which has not happened since 2009
- U.S. APRIL 1 ALL CATTLE ON FEED 95.0 PCT (TRADE ESTIMATE 95.0 PCT) – USDA
- U.S. MARCH CATTLE MARKETED 113 PCT (TRADE ESTIMATE 111.8 PCT) – USDA
- U.S. MARCH CATTLE PLACED ON FEED 77.0 PCT (TRADE ESTIMATE 79.0 PCT) – USDA
China’s March soybean imports from top supplier Brazil fell 24.8% from a year earlier, customs data showed on Sunday, after rains delayed cargoes; imported 2.1 million tons soybeans from Brazil, down from 2.79 million tons in March of last year
—However, shipments from the United States reached 1.71 million tons in March, up from last year’s 1.51 million tons
—China’s total soybean imports in March fell 13% from the same month last year to their lowest in more than five years
China March Corn Imports 318,482 Tons, -23.5%
China March Wheat Imports More Than Doubled to 555,536 Tons
China March Soyoil Imports 38,003 Tons, Up Sharply
China March Palm Oil Imports 306,195 Tons, -44.4%
China is making progress in resuming hog production, according to the Ministry of Agriculture and Rural Affairs; China’s breeding sows in stock in 400 counties monitored by the ministry expanded by 2.8 percent month on month in March, growing for the sixth consecutive month; newly-born piglets in farms with over 500 pigs in stock saw a month-on-month growth of 7.3 percent last month
China gets go-ahead to start trading hog futures – Reuters
- Hog futures have been studied for more than a decade
- Contract expected to be physically delivered – source
- Comes after swine fever caused high volatility, market upheaval
- Go-ahead given amid growing pressure to boost economy
China is set to become the second market in the world after the United States to trade live pig futures; the new contract, which has been under discussion for more than a decade and awaiting a green light for three years, comes as Beijing tries to jump start its economy amid growing worries about a long and deep contraction
A JBS SA plant in southern Brazil was hit by an outbreak of COVID-19, a source close to the company said on condition of anonymity on Friday, marking the first large-scale infection at a Brazil-based meat plant; affecting several workers at the meat processing facility in the town of Passo Fundo, in the state of Rio Grande do Sul, the outbreak follows several others in the United States in recent weeks, including at some JBS-owned plants.
The water level on Argentina’s Parana River is at a near 50-year low, hampering export traffic on the grains superhighway and causing local industry $244 million in losses over the past four months, the Rosario Grains Exchange said; with farmers now harvesting corn and soy, problems caused by the river’s decline at the key ports hub of Rosario come just as the government needs export dollars and tax revenue to stay solvent
Russia will suspend grain exports until July 1 only after the grain it has declared in its second-quarter quota has been shipped, the agriculture ministry said; Russia previously set the quota for grain exports of 7 million tons for April through June following the outbreak of the new coronavirus. This online grain export quota ran out on Sunday
—Russia’s online grain export quota was running out fast on Saturday as big traders rushed to get customs documents for future shipments, analysts said, adding that supplies from the world’s biggest wheat exporter would continue nevertheless; 3 mln tons still available for export in May-June -IKAR
Russia’s agriculture ministry sold 77,430 tons of grain, mainly wheat, from the state stockpile for 0.9 billion rubles ($12 million) in an auction on Friday; in total, the ministry has sold 879,725 tons of grain from its stockpile since the start of the sales on April 13; exporters are not allowed to participate in these auctions; the ministry plans to sell up to 1.5 million tons of grain – 83% of its state stockpile – into the domestic market to increase supply for flour millers and bakers amid the new coronavirus outbreak
Ukrainian farmers have sown 7.8 million hectares of spring grains as of April 24 or 52% of the expected area of 15.3 million hectares, the Ministry for Development of Economy, Trade and Agriculture said on Friday; the sown area included 1.07 million hectares of barley, 119,000 hectares of spring wheat and 2.4 million hectares of corn
Ukrainian seaport wheat exports fell nearly 37% in the week of April 18-24 after a record jump in the week earlier, preliminary data from the APK-Inform consultancy showed; the exports declined to 215,000 tons from 341,000 tons
—APK-Inform data showed that Ukraine has already exported 18.8 million tons of wheat in the current season, which runs from July to June
—A senior government official said earlier his month that Ukraine was ready to ban wheat exports if the volume exceeds the 20.2 million tons agreed with traders
Ukraine considers limiting corn exports for this season; exports could be limited to 29.3 mln tons; grain traders union sees no basis for a limit; the issue will be discussed this week
Ukraine, the world’s top exporter of sunflower oil, has stepped up seaborne exports of the commodity by about 88% this season, preliminary data from the APK-Inform consultancy showed; such exports totaled 3.469 million tons so far in the 2019/20 season, which runs from September to August, up from 1.844 million tons in the corresponding period of the previous season.
The Ministry for Development of Economy, Trade and Agriculture of Ukraine has predicted that Ukrainian farmers in 2020 will harvest 60 million tons of grain and leguminous crops compared with the previous forecast of 65-70 million tons due to lack of moisture, pandemic.
Kazakhstan increased its wheat export quota for May to 250,000 tons, from 200,000 tons in April, and more than doubled the quota for wheat flour to 150,000 tons, the Deputy Agriculture Minister said
Western European wheat prices eased on Friday as traders awaited the outcome of a Saudi import tender and the return of rain to dry grain belts for pointers on export demand and harvests; December milling wheat was down 1.00 euro, or 0.5%, to 192.00 euros ($207.30) a ton
The European Union will apply an import duty of 5.27 euros ($5.72) per ton for corn as of Monday, the move, which ends a period of zero tariffs for maize coming into the EU, follows a slump in U.S. prices to a 10-year low; the EU imposes duties when the cost of imported U.S. maize falls below an EU price floor for 10 consecutive days.
Iran’s government granted permission for the import of 3 million tons of wheat in January; of the total quantity, 1.6 million tons have been unloaded at ports and another 400,000 tons have arrived and are ready for unloading; the remaining 1 million tons will be imported by May 20.
Iraqi agriculture minister said on Friday that local wheat production to be more than 6 mln tonnes in 2020
MALAYSIA’S APRIL 1-25 PALM OIL EXPORTS SEEN AT 942,217 TONNES VS MARCH 1-25 AT 866,270 TONNES- AMSPEC MALAYSIA
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
Latest News & Market Commentary
ADM & Industry News
Cocoa Market Remains Weather Sensitive
September 6, 2024
Crude Oil Subdued Reaction to Jobs Data
September 6, 2024