Written Commentary
SOYBEANS
Soybeans ended lower. Some feel 17.00 SN may be too high for now and may be rationing demand. Still in August US crush and soybean demand could be near record high which could send prices back over resistance. USDA announced US old crop and new crops soybean sales to unknown. Weekly old crop soybean sales is est near 150-500 mt and new crop 50-600.
CORN
More talk of US recession and slower World economies have triggered selling in most commodities. On days like this, the glass is half full. Unexpected steep decline in top US retail companies earnings raised concern about consumer demand. Consumers are being hit by higher energy and food prices. Retail companies said cost of moving product to shelves were a lot higher than expected. This is not expected to change anytime soon. Corn futures ended lower. Some feel 8.00 CN may be too high for now and may be rationing demand. Still in Q4 demand could be near record high which could send prices back over resistance. Weekly US ethanol production was near last week and down 4 pct from ly. Stocks were down 1 pct from last week but still up 22 pct from ly. Weekly old crop corn sales is est near 150-450 mt and new crop 500-900. There were rumors that Russia may allow a corridor of Ukraine grain to leave Odessa if NATO members allow Russia Fertilizer exports. Most doubt this and suggest buying this break.
WHEAT
Wheat futures ended sharply lower. There were rumors that Russia may allow a corridor of Ukraine grain to leave Odessa if NATO members allow Russia fertilizer exports. Some feel 13.00 WN and 14.00 KWN may be too high for now and may be rationing demand. Still, USDA is estimating World exporters stocks to use ratio record low with demand uncovered and supply tightening. Weekly old crop wheat sales is est near -50-150 mt and new crop 50-250. So far, Annual US HRW crop tour has found 40 mil bu crop in CO vs 69 ly, 37 in NE vs 41 ly, 60 in OK vs 115 ly and 41 in TX vs 74 ly. USDA est KS crop near 271 vs 364 ly. 5 state total 449 vs 663 ly.
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.
