EU Imposes Rule on Brazil Soymeal


Grains are lower. SX is down 6 cents and near 12.96. SMZ is near 387.8. BOZ is near 50.03. CZ is down 1 cent and near 4.82. WZ is unch and near 5.79. KWZ is down 2 cents and near 6.92. MWZ is down 1 cent and near 7.49. US Dollar is lower but did test new highs near 106.84. Crude is lower but did test $95.US Fed policy of higher and longer rates also being used by Crude analyst. US stocks are lower There is still concern over China property market, US shutdown and higher inflation.

Soybean futures are lower. Dalian soybean, soymeal, palmoil and soyoil were higher. Some buying before next weeks China Golden Holiday. SX-SF spread widening on lower US exports. Brazil farmer increased soybean sales on lower Real. Central Brazil could see some rains but long range forecast is dry. Argentina is dry and slowing farmers selling. EU imposing new rule as of Oct 1 that Brazil needs to show certification that Brazil soymeal exports are no deforestation origin. If true, this could increase demand for US soymeal exports. Weekly US export sales are estimated near 500-1,200 mt.

Corn futures are slightly lower. US Midwest should be dry and should help harvest. Yields are variable but improving. Brazil has rains but 2 week forecast is dry. Brazil farmer increased cash sales on sharply lower real. US farmer remains slow seller of corn with ethanol margins positive. US corn export outlook remains low due to higher SA exports, talk of higher Ukraine exports and US river navigation problems. Weekly US corn export sales are est at 500-1,000 mt.

Wheat futures are lower. Wednesday sharp selloff linked to Ukraine offering wheat at Egypt tender and higher US Dollar. 7 wheat vessels have not left Ukraine. It remains warm and dry across S Russia and Ukraine wheat crops area. US south plains is dry. Weekly US export sales are est at 250-500 mt. KWZ is at 2 year low.


Interested in more futures markets?  Explore our Market Dashboards here.

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.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now