By ADM Investor Services, Inc. Research Team
The soy complex held onto gains today on optimistic news on the US/China trade front. There were some positive developments on the US/China trade war front this morning with China’s Commerce Department indicating they don't want to see any further escalation in trade barriers and the Chinese commerce minister also suggested the two sides were in trade discussions. The market took the news as a definitive sign of progress. November soybeans are trading at 869 up 3 ¼ cents at mid-day. December soybean meal is down $1.10 at $298.60 and December soybean oil is up slightly at 28.52. Net weekly export sales for soybeans came in at 95,200 metric tonnes for the current marketing year and 353,100 for the next marketing year for a total of 448,300. Net meal sales came in at 52,600 metric tonnes for the current marketing year and 245,400 for the next marketing year for a total of 298,000. The 245,400 tonnes was the largest weekly sales so far in the 2019/20 marketing year. Net oil sales came in at 9,200 metric tonnes for the current marketing year and 1,000 for the next marketing year for a total of 10,200. The open interest in soybeans went up 3,934 contracts on Wednesday with soybean meal down 7,216 contracts and soybean oil up 3,304 contracts.
December corn retreated from a weekly high of 377 and traded at 371 ¼ up just ¼ cent at mid-session. The net weekly export sales for corn came in at -2,500 metric tonnes for the current marketing year and 858,900 for the next marketing year for a total of 856,400. As of August 22, cumulative corn sales stand at 10.6% of the USDA forecast for 2019/2020 (next) marketing year versus a 5 year average of 18.2%. Sales of 866,000 metric tonnes are needed each week to reach the USDA forecast. The open interest in corn went down 53,311 contracts on Wednesday and is down over 156,000 contracts the last four sessions.
Wheat markets continue to struggle to gain traction with Chicago December trading at 474 ½, down 1 cent at mid-session and Kansas City December at 403, down 1 ¼ cents. Net weekly export sales for wheat, came in at 661,700 metric tonnes for the current marketing year and none for the next marketing year for a total of 661,700. As of August 22, cumulative wheat sales stand at 41.8% of the USDA forecast for 2019/2020 (current) marketing year versus a 5 year average of 47.2%. Sales of 381,000 metric tonnes are needed each week to reach the USDA forecast. The open interest in Chicago went down 4,667 contracts on Wednesday and Kansas City went down 2,191 contracts.
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 risk of loss in trading futures and options can be substantial. Past results are not indicative of future results or performance. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff. Research analyst does not currently maintain positions in the commodities specified within this report. 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.
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