Written Commentary
MORNING AG OUTLOOK
Grains are mixed. SK is down 1 cent and near 11.39. SMK is near 326.3 . BOK is near 45.03. CK is unch and near 4.23. WK is down 4 cents and near 5.79. KWK is down 6 cents and near 5.79. MWK is down 3 cents and near 6.59. US stocks are lower. Half crowd thinks US economy is too hot other feels US economy is heading for recession. US facing shutdown. Congress should kick spending down the road. US Dollar is higher. Crude is lower. Gold is lower. China economy on focus.
SK is near 11.39. Dalian soybean were lower, soymeal, palmoil and soyoil were higher. USDA announced 123 mt US soybeans to unknown. Soyoil futures continues to gain on soymeal. There is talk of new controls on import feedstocks for renewable fuel. China soybean demand may be increasing but Brazil soybean prices still discount to US. Brazil soybean basis is -40 vs US +80. Argentina offering soymeal near $361 vs US $408. World crush rates are record high. Where will all the new soymeal go?
CK is near 4.23. CH-CK -15. Dalian corn futures were higher. US corn futures need new concern over Brazil weather and higher export demand to sustain rallies. China is buying Ukraine corn. Rumors they bought US PNW. C/S Brazil, Argentina and Paraguay are dry. Brazil first crop harvest satisfying domestic use. More questions about second crop outlook. Most of US Midwest is warm and dry. Crazy Chicago weather. Record high temps Tuesday. Tornados last night. 22 degrees this am. Warm weekend. Cold temps next week.
Wheat futures are lower. WH found resistance near 20 DMA. Central US is dry. Some feel Managed funds could slowly liquidate short futures inot US growing season. China loading US SRW helping basis and spreads. Jordan looking to buy Black Sea wheat at steep discunt to France, US SRW $251. Russia $209.
Interested in more futures markets? Explore our Market Dashboards here.
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.
