Grains Off to Higher Open

MORNING OUTLOOK

Grains are higher. SK is up 13 cents and near 13.84.  SMK is near 430.0. BOK is near 46.21. CK is up 6 cents and near 5.42. WK is up 11 cents and near 6.52. KWK is up 16 cents and near 6.38. Bitter US cold temps has pushed energy prices higher. Some feel cold could increase fuel and feed demand and slow domestic logistics. US stocks are higher. Higher earnings, stimulus and vaccine versus the virus. Higher US debt weighs on US Dollar.

For the week, SRW Wheat prices were down roughly 4 cents; HRW down 8; HRS down 10; Corn was down 11 cents; Soybeans up 9 cents; Soymeal down $2.00, and; Soyoil up 115 points. Crushing margins were down $0.02 $0.64 (July); Oil share up 1% at 34%.

Chinese Ag futures on holiday from Feb. 11 to 17 (Thursday to Wednesday) for the celebration of Chinese Spring Festival. Resumes on Feb. 18 (Thursday). Malaysian palm oil prices were up 9 ringgit at 3,533 (basis May) up 162, (basis April), on Monday at 3,720 on higher exports, higher soyoil prices.

Matif rapeseed futures made new highs. Matif corn futures also made new highs, Matif wheat is near 2 week highs. EU wheat exports need to slow. Russia export price ill defined as taxes are imposed. USDA Outlook Forum Friday. Trade slowly shifting focus from South America weather to north hemisphere.

Brazil weather will be mixed over the next ten days to two weeks. Southern parts of the nation will experience good drying conditions favoring soybean maturation and harvesting as well as Safrinha crop planting. Argentina weather is becoming more tenuous with restricted rainfall over the next ten days to two weeks.

On Friday, Managed funds were net buyers of 3,000 SRW Wheat;41,000 Soybeans and 4,000 lots of Soyoill, and; net sold 5,000 corn and 2,000 Soymeal. We estimate Managed Money net long 8,000 contracts of SRW Wheat; long 321,000 Corn; net long 157,000 Soybeans; net long 61,000 lots of Soymeal, and; long 107,000 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.

© 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.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now