Grains Higher on China Buying


Grains are higher. SF is up 5 cents and near 13.11. SMF is near 421.1. BOF is near 50.20. CH is up 1 cent and near 4.91. WH is up 5 cents and near 6.36. KWH is up 4 cents and near 6.67. MWH is up 2 cents and near 7.41. US stocks are higher. US Dollar is lower. Crude is lower. Gold is higher.


SF is near 13.11. SF found support near 13.00. Resistance near 13.20. There is talk China bought 3-4 US soybean cargoes for Jan-Feb. Dalian soybean, soymeal, palmoil and soyoil futures  were lower. US domestic soymeal basis were firm on fire at S Carolina crush plant. There was more soymeal futures short covering. There is increase in global vegoil supplies but soyoil bulls are still looking for higher US domestic use to rally futures. Trade watching post Argentina new President inauguration policy esp fate of export taxes. More rain in S Brazil. Shower are forecast for dry C/N Brazil.

CH is near 4.91 and up the 6th day straight. CH is near 4.94 resistance. There is talk that China switched 10 corn cargoes from Brazil to US. S Korea  bought US corn. CONAB est Brazil corn crop at 119 mmt down 10 mmt vs USDA 129. Brazil export supply is on the decline plus farmers are now selling corn until more is known about crop size. US domestic corn use is up while export are down. USDA est Argentina corn crop at 55 mmt vs 34 ly.

Wheat futures are higher. WH pushed above 6.32 resistance. Could be some new selling near 6.50. USDA announced another 198 mt of US SRW to China. This makes 1.6 mmt US SRW bought. Some est total near 1.75. US SRW end stocks are on the decline with SRW export commit 90 pct of USDA goal. Egypt bought 180 mt Ukraine and Russia wheat.


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