Grains Sharply Lower
Grains are lower. SF is down 9 cents and near 11.82. SMF is near 392.3. BOF is near 37.63. CZ is down 9 cents and near 4.17. CH21 is near 4.24. WH21 is down 3 cents and near 6.00. KWH21 is down 5 cents and near 5.55. Technically, corn, soyoil and soybean futures may be overbought. US stocks are higher. US Dollar is lower. Crude is higher. Gold is lower. Vaccine news lifting equities and energy and markets.
Corn futures are down due to talk Brazil is now offering Jan corn for exports. Lack of soybean supplies for export is now allowing for corn exports. Month end, pre-holiday and per first notice liquidation is also offering resistance. Word that China may wash out US soybean export sales and even switch open unshipped sales to Brazil is also weighing on prices. One weather map added rans to parts of Brazil and Argentina. US, SA and Black Sea farmers have stopped selling for the rest of this year.
Soybean futures are down due to talk China will wash out open US sales and could switch some sales to Brazil. Despite talk of expanding hog numbers, China crush margins have turned negative and soymeal demand has slowed. Large volume of soybean imports to arrive is also weighing on margins. Fact one weather map is adding rains for parts of Brazil and Argentina is also offering resistance to futures. Asian vegoil prices are lower on talk of lower palmoil exports and lower India demand.
Wheat future are following lower corn prices. Lower US Dollar and talk of a 2021 vaccine could offering support. Russia wheat areas are seeing snow and less colder temps. Winter wheat stands though are below normal. Russia is struggling finding new export demand due to high export prices but Russia farmer is still not selling. Domestic Russia wheat/flour prices remain record high. US winter wheat crop ratings dropped to 43 pct good/ex versus 46 last week and 47 expected.
On Monday, Managed funds were buyers of 4,000 contracts of SRW Wheat, 12,000 Corn; bought 8,000 Soybeans, 1,000 soymeal and 1,000 lots of soyoil. We estimate the funds are net long 20,000 wheat, 282,000 corn, 223,000 soybeans, 106,000 soymeal and 91,000 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.