Explore Special Offers & White Papers from ADMIS

Grains Lower Start Led by Wheat


Grains are lower. SH is down 3 cents and near 13.83. SMH is near 408.1. BOH is near 59.14. CH is down 1 cent and near 6.03. WH is down 5 cents and near 7.40. KWH is down 10 cents and near 7.58. MWZ is down 10 cents and near 9.13. Dalian corn, soybean and soymeal futures were lower. Palmoil and soyoil were higher.

US stocks are mixed. US Dollar is lower. Crude is higher. Gold, copper, cocoa, cotton, coffee and sugar are higher. Commodities are trying to recover from hawkish US Central Bank comments. Increase cases of Covid could slow Global and China economic growth.

Weekly US soybean export sales were only 382 mt. Total commit down 24 pct vs USDA 9. US soyoil futures were higher on talk of higher exports and increase demand for biodiesel. Soybeans are lower on talk of rains in dry areas of South America late next week. Brazil soybean crop down 10-15 mmt vs USDA, Argentina down 5 mmt Total SA down 20 mmt. BAGE rated Argentina soybean crop 48 pct G/E vs 56 lw. Soils 42 pct dry vs 31 last week. Failure to trade over 14.00 SH and 416 SMH triggered long liquidation. BOH tested 59.27.

Weekly US corn export sales were only 256 mt. Still total commit on pace to reach USDA goal. Some estimate Brazil corn crop near 113 mmt vs USDA 118. Argentina 52 vs USDA 54.5. BAGE rated Argentina corn crop 40 pct G/E vs 58 lw. 48 pct crop early planted. Yield loss 20 pct.

Additional wheat futures selling overnight. French export prices lower. Australia exports higher.

Some estimate US Dec 1 corn stocks at 11,600 mil bu vs 11,294 ly. Sep-Nov use 4,461 4,743 ly.

Some estimate US Dec 1 soybean stocks at 3,100 mil bu vs 2,947 ly. Sep-Nov use 1,575 1,797 ly.

Some estimate US Dec 1 wheat stocks at 1,350 mil bu vs 1,703 ly. Sep-Nov use 451 vs 483 ly.

Some est US 2022 wheat acres at 48.2 vs 46.7 ly. Winter wheat 33.3 vs 33.6. Spring 12.7 vs 11.4.

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

Explore Special Offers & White Papers from ADMIS

Get Started