Very Mixed Grain Trade
Very mixed financial and commodity trade. SX down 5 cents and near 10.50. SMZ is up 2.20 and near 365.8. BOZ down .67 and near 33.21. CZ is unchanged and near 3.96. WZ is up 5 cents and near 6.02. KWZ is up 6 cents and near 5.41.US stocks are lower. Crude is lower, Gold is lower. US Dollar is higher. Covid cases are on the rise in EU and US. There is no US stimulus package yet.
There is talk China bought 5 US Nov-Jan soybean cargoes and 6-8 Brazil Feb-June.
US 6-10 day forecast is cool NW and hot SE and wet Midwest. Better rains are forecasted for Brazil.
Matif and Black Sea futures are higher despite forecast of rains in Russia.
Argentina estimated 8 pct of central wheat areas will be abandoned due to dry weather. Argentina will not devaluate their currency or seize Bank deposits despite economic crises .
Average estimate for NOPA US Sep soybean crush is near 165.0 mil bu and largest Sep crush on record.
US corn export demand is rising on talk China may imports a total of 30 mmt corn. CZ could trade over CH21.
US weekly export sales report is delayed until Friday due to Mondays holiday . SX20 is 79 cents over SX21. SX21 may need to rally as some feel US farmers will need to harvest 90 million soybean acres in 2021 and a yield of 50 bpa to satisfy demand, offset lower South America crops and tight US 2020/21 balance sheet.
On Wednesday, Managed funds were net buyers of 3,000 SRW Wheat; net bought 15,000 Corn; bought 9,000 Soybeans; bought 6,000 Soymeal, and; net bought 2,000 Soyoil. We estimate Managed Money net long 32,000 contracts of SRW Wheat; long 179,000 Corn; net long 245,000 Soybeans; net long 84,000 lots of Soymeal, and; long 86,000 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.