MORNING AG OUTLOOK
Grains are lower. SN is down 10 cents and near 12.85. SMN is near 391.5. BON is near 45.16. CN is down 4 cents and near 5,89. WN is down 7 cents and near 5.83. KWN is down 10 cents and near 7.73. MWN is down 7 cents and near 7.86. US stocks are lower. US Dollar is higher Crude is lower and near $69. Broad commodity selloff linked in part to higher interest rates and lower consumer spending. Traders focusing more on 16-30 day US Midwest wet forecast versus next 14 days of net drying.
CN dropped to below 5.90. Higher US Dollar and lower commodity prices led by Crude weighed on corn prices. US domestic cash basis remains firm. US could pick up a few corn cargoes due to tight Brazil logistics. Weekly US corn exports were 51.7 mil bu vs 55.6 ly. Season to date exports are 1,129 mil bu vs 1,665 ly. USDA goal is 1,775 vs 2,471 ly. Traders focusing on US 16-30 day wet Midwest forecast. Next 14 days are warm and dry. USDA estimated 92 pct of US corn crop is planted vs 84 average. Crop is rated 69 pct G/E vs 73 ly and 68 average. IA, IL, OH and MI above 70. NE, MO and PA below 60.
SN dropped below 13.00. SMN below 400. BON is near 45. US could pick up a few new crop soybean cargoes due to drop in Brazil supply. Brazil and Argentina farmer selling is slowing. US soybean plantings are 83 pct done vs 65 average. Dalian soybean, soymeal, palmoil and soyoil futures were lower. Palmoil futures lower on talk of higher supply, lower energy prices, talk Indian might increase import duty and lower Asian prices/demand. Weekly US soybean exports were 8 mil bu vs 14 ly. Season to date exports are 1,780 mil bu vs 1,820 ly. USDA goal is 2,015 vs 2,158 ly. USDA 2023/24 soybean export goal drops to 1,975.
WN dropped below 6.00, KWN 8.00 and MWN 8.00. WN is at 26 month low, KWN 15 month low and MWN new contract low. USDA increased US WW crop rating to 34 pct G/E. KS is still 10 G/E. US spring wheat crop is 85 pct planted. Russia dropped its wheat export prices to $230-240. Weekly US wheat exports were 14 mil bu vs 14 ly. Season to date exports are 718 mil bu vs 734 ly. USDA goal is 775 vs 800 ly. USDA 2023/24 wheat export goal drops to 725.
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.