Explore Special Offers & White Papers from ADMIS

Grains Mixed, Rains in South America


Grains are mixed. SH is down 3 cents and near 14.06. SMH is near 423.7. BOH is near 58.95. CH is unch and near 6.07. WH is down 2 cents and near 7.55. KWH is down 4 cents and near 7.70. MWZ is down 9 cents and near 9.13. Increase in 2 week South America rains weighed on overnight grain prices.

US stocks are mixed. US Dollar is higher. Crude is higher. Trade will watch this week’s meetings between Russia and US and NATO.

Key USDA Jan report is Jan 12. Many hope for a bearish report so they can buy a break into 2022. Trade estimate US Dec 1 corn stocks at 11,602 mil bu vs 11,294 ly. Trade estimate US Dec 1 soybean stocks at 3,129 mil bu vs 2,947 ly. Trade estimate US Dec 1 wheat stocks at 1,421 mil vs 1,703 ly. Trade est US 2022 Winter wheat acres at 34.2 vs 33.6. HRW 24.0 vs 23.5, SRW 6.5 vs 6.6.

While USDA may not estimate it this week some estimates of South America corn crop is down 10-12 mmt.  CH support is 5.97 and 5.86. Lower SA crops and higher US demand and CH could test 6.17 and 6.40.

Same group sees South America soybean crop down 17-21 mmt. Hot/dry 8 days could add to losses. Fact SH traded over 14.00 and SMH 420 could suggest SH could test 14.45, then 15.00.

KWH dropped from 8.71 to 7.54. Drop due to low US exports and higher South Hemisphere crops. Since Aug 2022 low, KWH has had 5 pullbacks from a rally; 112 cents, 156, 97 and 103. All pullbacks followed by new highs. Current pullback is 90 cents. 2022 supplies key to prices. Higher Russia export tax, lower EU supplies and if US becomes competitive Mar-May could be supportive.

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