Grains Are Higher. Turnaround Wednesday?

MORNING OUTLOOK

Grains are higher. Turnaround Wednesday? SH is up 14 cents and near 13.75. 13.84 resistance? SMH is near 394.1. 400resistance? BOH is near 60.00. 64.00 resistance? CH is up 7 cents and near 6.06. 6.17 resistance? WH is up 11 cents and near 7.80. KWH is up 14 cents and near 7.86. 8.00 resistance? MWH is up 15 cents and near 9.22. US 2022 summer weather could be dry?

US stocks are higher. US Dollar is lower. Crude is higher and near$86. Gold, silver, copper, coffee, sugar are higher. Cotton new highs.

IEA raised World 2021 global oil demand. OECD November oils stocks 7 year low. Dalian soybeans, soyoil, rapeoil and corn are higher. Palmoil new highs. Soymeal lower. Palmoil higher on talk Indonesia will increase biodiesel use. World biodiesel needs higher.

Argentina forecast is wet. Paraguay, S Brazil, Argentina 6-10 day is dry. US South plains dry. SH Jan range 13.42-14.15. SA harvest negative. 2021/22 US carryout est 275-345. Demand key. Parana early soybean yields only 5-15 bpa. MG yields record. N Brazil lower. Too wet? China bought Brazil soybeans. China meal stocks record low. US cash crush margins +2.40.

Matif and Canada RSO and canola prices lower. Germany canola stocks dangerously low.

Matif corn prices higher. Brazil domestic corn prices $7.75, up 20 pct on year. 5 month high CH back over 6.00. Lack of farmer selling and higher exports demand supportive. Some could see US 21/22 corn carryout near 1,195 vs USDA 1,540. Exports 2,680. USDA 2,425. Trade est US 2022 corn acres 91.5 vs 93.4 ly, soybeans 89.0 vs 87.2 and wheat 49.0 vs 46.7.

US HRW wheat weather drier than normal could extend into spring. EU/Russia weather normal. Some feel 5 year KC wheat futures rally could extend next 12-18 months. US weather key. Est US 2021/22 wheat carryout 585-700. Matif wheat futures higher on new demand. Ukraine and Russia tension higher. US Sec of State to Ukraine. UK sending support to Ukraine. World Baltic, cape and panama freight lowest since early 2021. US barge freight 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.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now