Written Commentary
MORNING OUTLOOK
Grains are mixed. SN is up 18 cents and near 17.46. SX is near 15.63. SMN is near 420.8. BON is near 82.58. CN is up 7 cents and near 7.64. CZ is near 7.16. WN is unch and near 10.71. Overnight high was 10.84. KWN is up 1 cent and near 11.50. Overnight high was 11.61. MWN is unch and near 12.27. Overnight high was 12.39.
US stocks are lower. US Dollar is higher. Crude is higher and near $120. Gold, copper, silver, cocoa and sugar are lower. Coffee and cotton are higher.
Soybean prices continued Tuesdays rally overnight. US April census soybean exports were 134 mil bu or up 16 versus inspections. This suggest final exports could be closer to 2,190 mil bu vs USDA 2,140. Soymeal futures have rallied on talk US crushers may be taking downtime in part for maintenance, lower margins and drop in soybean supplies. Soyoil has been on the defensive versus soymeal on steep drop in Brazil soyoil premiums. Indonesia also lowered their palmoil export tax.
Corn futures rallied on strong domestic basis and talk of higher export demand. Some feel US corn exports could be closer to 2,700 mil bu vs USDA 2,500. US April corn exports were 35 mil bu higher than inspections. There is also talk that Russia and Turkey talks are all about Russia sending warships through Bosphorus and Turkey attack on Turks, not Ukraine export corridor. Possible ridging in US west Midwest starting mid-June also supports higher corn futures.
Wheat has dropped on headlines of progress in talks to allow for Ukraine food exports. Some feel that there will be nothing positive from the talks and Ukraine exports are barred from border crossing. USDA will have a mess with World wheat export matrix with India banning exports and fears of lower Canada, EU and US 2022 supplies for export.
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.
