MORNING OUTLOOK
Grains are mixed. SX is down 7 cents and near 14.01. SMZ is near 411.2. BOZ is near 61.26. CZ is down 1 cent and near 6.66. WZ is up 8 cents and near 8.80. KWZ is up 9 cents and near 9.52. MWZ is up 9 cents and near 9.57.
Soybean futures are lower due to renewed concerns over the Chinese and global economies and potential lack of Chinese interest for US beans. World Bank lowered China growth from 5 pct to 2.8 and first time in 30 years below 3.2. Argentina farmer selling during US harvest has dropped Argentina export prices levels below US prices which offers resistance. Brazilian plantings going well which suggest US soybean export demand window could be over by mid-January.
Corn futures are lower due to higher Dollar and lower commodity prices. US Dollar is at new 20 year highs. Recession fears continue to raise concern about feed demand. Increase US harvest offset dry Argentina weather and additional concerns over Black Sea grain exports. Fact US export sales are 50 pct of last year to date and lower Mississippi river levels could weigh on domestic corn basis. Still, crushers, feeders and exporters need to buy corn before harvest.
US wheat futures are higher as funds covered shorts. Drought in the US plains offers support. The Ukraine export corridor is increasingly under threat, even before the expiry of the first 120 day period in late November. Russia farmers may not be exempt from a military call-up. Market trying to assess Putin’s next move following the referendum results showing 90-99 pct voting to become part of Russia.
US Dollar is higher. US stocks, silver, coffee, cocoa, sugar and cotton are lower. Interest rate futures are higher. Crude, gold and copper have turned higher.
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.