Explore Special Offers & White Papers from ADMIS

Month End. Grains Are Higher.

Month end. Grains are higher. SU is up 5 cents and near 8.91. CU is up 1 cent and near 3.76. WU is up 4 cents and near 5.34 US stocks are higher. US Dollar is lower. Crude is higher. Gold is higher. Hong Kong is delaying elections. Pfizer may request FDA approval on a vaccine as early as October. Making 150 million does for Japan.

For the week, SRW Wheat prices are down roughly 5 cents; HRW down 5; HRS unchanged; Corn is down 7 cents; Soybeans down 6; Soymeal up $2.00, and; Soyoil down 10 points. Crushing margins are up 8 at 99 cents; Oil share unchanged at 33%.

For the month, SRW Wheat prices are up roughly 40 cents; HRW up 3; HRS down 5; Corn is down 22 cents; Soybeans up 11; Soymeal up $5.00, and; Soyoil up 140 points. Crushing margins are up 14 cents at 99, Oil share up 1 at 33%.

Chinese Ag futures (Sep) settled up 58 yuan in soybeans, up 26 in Corn, down 5 in Soymeal, up 32 in Soyoil, and down 20 in Palm Oil. Corn prices in China are soaring, which could be good news for American farmers. As China’s formerly bloated stockpiles shrink, prices have climbed to a five-year high. Since January, front-month corn futures on the Dalian Commodity Exchange have risen 27% to about 2,306 yuan ($329) a metric ton, a level last seen in the summer of 2015.

The 6 to 10 day outlook for the US Midwest has rains falling across the regions Friday of next and through the weekend; temps will be running below average over the next 10 days. The 11 to 16 day forecast for the Midwest has the GFS model showing below average rainfall and below average temps. The European above average temps and limited rain.

China is asking for Covid free meat exports from Brazil and is asking for massive testing for the virus in Brazil meatpacking plants. U.S. ports should be very active later in the year as aggressive Chinese bookings have boosted total corn and soybean export sales to modern-day and potentially all-time record levels for July.

Soybeans firmed overnight on hopes of new China buying.

Frosts over recent mornings in Argentina’s central farm belt piled stress onto wheat crops already suffering from prolonged dry weather, the Buenos Aires Grains Exchange said in its weekly report; dry conditions started hitting wheat crops in early June.

On Thursday, Managed funds were net sellers of 2,000 contracts of SRW Wheat; net even in Corn; bought 2,000 Soybeans; net bought 3,000 lots of soymeal, and; bought 3,000 Soyoil. We estimate Managed Money net short 6,000 contracts of SRW Wheat; short 161,000 Corn; net long 78,000 Soybeans; net short 22,000 lots of Soymeal, and; long 37,000 Soyoil.

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