Argentina Rains Offer Resistance to Ags
Grains are lower. SH is down 2 cents and near 15.22. SMH is near 479.0. BOH is near 63.96. CH is down 2 cents and near 6.78. WH is down 2 cents and near 7.39. KWH is down 5 cents and near 8.36. MWH is up 1 cent and near 9.02. US stocks are lower. US Dollar is lower. Crude, silver, cocoa are lower. Copper, coffee, sugar and cotton are higher.
Soybean futures are lower. SH reversed yesterday after making new high for the move. A higher US Dollar and lower crude plus rains in Argentina offered resistance. US weekly export sales are delayed until Friday due to Mondays holiday. Trade awaiting new news on China imports. News could be delayed starting Sunday due to China New Year holiday. Brazil soybean export prices are below US with 4.5 mmt in export line up. MG Brazil harvest is near 2 pct. Matif rapeseed is near 13 month low as Germany withdrew RSO use in bio fuel. China Dec hog slaughter was up 18 pct from Nov and 7 pct vs ly. China government asking farmers to slow production after hog prices have dropped 50 pct from Oct. Some est US farmer 75 pct sold 2022 soybean crop.
On Wednesday Corn made new 10 week high before closing lower. Concern about export and ethanol demand and rains in Argentina offered resistance. Higher Dollar and lower Crude also weighed on corn futures. Brazil has shipped 2.7 mmt of corn in Jan and has 3.7 mmt in line up. Argentina farmer corn sales are only 6.9 mmt vs 14.4 ly. Matif corn prices are higher with increase domestic demand supportive. Ukraine corn export prices remain below US. CH is testing first support near 200 DMA at 6.78. Some est US farmer 55-60 pct sold 2022 crop.
Wheat futures are mixed. More moisture across north HRW and all SRW crop areas is reducing dry areas to SW HRW offers resistance. Black Sea wheat to Algeria was $40 below US HRW. USDA est of higher US 2023 WW acres also offers resistance. France increased export est. Putin wants to slow exports?
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.
© 2024 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.