MORNING OUTLOOK
Grains are mixed. SN is up 10 cents and near 15.32. SX is up 2 cents and near 13.64. SMN is near 398.9. BON is near 66.11. CN is down 3 cents and near 6.54. CZ is down 3 cents and near 5.36. WN is up 1 cent and near 6.63. KWN is unch near 6.15. MWN is up 2 cents and near 6.86. US stocks are higher. US Dollar is lower. Crude is lower. Gold and copper are lower.
US Midwest 2 week weather forecast is for mostly favorable weather. This should help crops.
Talk that China is targeting commodity speculators and hoarders is weighing on commodity prices. Talk of higher US acres hurt corn prices. 90 pct US corn planted vs 80 ave. IL 90, IA 97, OH 76.
US corn domestic basis are firm on increase ethanol demand, feed use and export demand. EU and Black Sea new crop corn futures lower on favorable weather. Old crop EU firm on low supplies
Asian soymeal and vegoil markets are higher. Soybeans lower. China soybean crush margins negative. China bought 7-17 Brazil cargoes last week vs 40 per week needed to reach 100 mmt import.
Concern remain for Argentina with labor strikes, low navigation water levels and talk of Covid lockdown.
USDA est 75 pct soybean crop planted vs 80 expected and 54 ave. IA 89, IL 80, OH 66, MO 44. Key in final price direction will be US summer weather with some forecasting dry and warm weather.
Matif rapeseed futures near 5 week low, Canada canola futures down for 3rd straight day.
- mmt of Europe and Black Sea wheat was offered in Egypt wheat tender at prices $20-25 below US.
USDA rated US winter wheat crop 47 pct G/E vs 48 last week. HRS crop rated 45 pct G/E vs 80 ly. KS 55 G/E, OK 51, OH 74, IN 62, WA 43, ND HRS 31 pct G/E.
On Monday, Managed funds were net sellers of 4,000 contracts of SRW Wheat; 8,000 Corn; 2,000 Soybeans; 3,000 Soymeal, and; 1,000 in Soyoil. We estimate Managed Money net short 6,000 contracts of SRW Wheat; net long 260,000 Corn; long 129,000 Soybeans; long 35,000 Soymeal, and; net long 66,000 Soyoil.
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