Grains are higher. SU is up 26 cents and near 14.89. SQ is near 16.43. SX is near 14.21. SMU is near 444.4. BOU is near 65.74. CU is up 14 cents and near 6.23. CZ is near 6.20. CZ23 is near 5.88. WU is up 17 cents and near 7.96. KWU is up 15 cents and near 8.64. MWU is up 17 cents and near 8.98.
US stocks are higher. US Dollar is lower. Crude is lower on recession concerns.
USDA surprised the corn market with weekly crop ratings down 3 pct to 58 pct G/E. There continues to be a widening spread between good crop outlook in north and east and below trend in KS and NE. 2 week weather still suggest dry and warm is NE, south and west IA, KS, N MO and WC IL. Trade est US corn yield at 175.9 vs USDA July 177.0. One of last crop watchers est US corn yield at 174.0. Trade est US 2021/22 corn carryout at 1,512 vs USDA 1,519 and 2022/23 at 1,402 vs USDA 1,470. Next CU resistance is 6.32. A 10 nautical mile buffer zone was announced for Ukraine grain exports. First Ukraine corn cargo may now be going to Syria. Second S Korea. EU is now bidding for US corn.
USDA also surprised the soybean market with weekly crop ratings down 1 pct to 59 pct G/E. Like corn, there is a widening spread between good crop outlook in north and east and below trend in KS and NE. 2 week weather still suggest dry and warm is NE, south and west IA, KS, N MO and WC IL. Trade est US soybean yield at 51.1 vs USDA July 51.5. One of last crop watchers est US corn yield at 50.5. Trade est US 2021/22 soybean carryout at 226 vs USDA 215 and 2022/23 at 230 vs USDA 230. Next SU resistance is 14.97.
USDA also surprised the spring wheat market with weekly crop ratings down 6 pct to 64 pct G/E. 9 pct of the crop is harvested. Trade est US 2022/23 wheat carryout at 630 vs USDA 639. Next WU resistance is 8.45. A 10 nautical mile buffer zone was announced for Ukraine grain exports. There are still questions if Russia can ship 40 mmt of wheat, EU 35.5, Ukraine 10.0 and India 6.5.
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.