ADMIS Morning Grain comments April 12, 2011
ADMIS Morning Grain comments
April 12, 2011
Early calls are lower. Most commodity markets are in the red this morning. Another after shock in Japan had Asian markets lower. Word that China will sell 3 mmt of soybeans from their reserves and continued talk of lower imports is offering resistance to soybean prices. One trading house recommendation to reduce commodity longs is also offering resistance to Crude, Copper and grains. SK is down 8 cents and near 13.59. CK is down 6 cents and near 7.69. WK is down 11 cents and near 7.87. KWK is down 5 cents and near 9.13. Dollar is sharply lower. Crude, coffee, gold, cotton, livestock and copper are lower. Cocoa, sugar, silver and rice are higher. Money flow could weigh on commodity prices but 2011 World wheat and potentially early spring US corn weather may not be bearish. What if the Dakotas do not increase SU corn acres by 2.0 mil? What if US corn yield down not make 161.0? Dalian Sep soybean futures were down 23 cents and near 18.64. Word China will sell 3 mmt from reserves offered resistance. Talk of lower 2011 rapeseed crop is offering support. Dalian Sep corn futures were down 4 cents and near 9.12. French wheat futures are lower with traders watching global demand, 2011 weather and economic outlook for direction. US Midwest weather forecast looks cool and wet across the north areas over the next 10 days. South plains continue to look mostly dry. Europe and China wheat areas still look dry. Wet weather could still slow plantings in Canada, Traditional funds sold 7,000 soybeans on Monday and are net long 111,000 soybeans, 19,700 soymeal (-2) and 58,000 soyoil (-4). Funds bought 10,000 corn and are net long 332,000 corn. Funds were net buyers of 2,000 Chicago wheat and are net long 26,000 wheat contracts. Index funds are estimated to be net long 123,600 soybean contracts (-1), 78,000 soyoil(unch), 15,000 soymeal(-2), 272,700 corn(-2), and 173,500 wheat(-2). Commercials are short 537,000 corn (+27), 179,200 wheat (+7) and 228,000 Soybeans (+8). Support Resistance May. Beans 1350 1372 May. Bean Oil 5815 5897 May. Meal 347.90 356.30 May. Corn 758 785 May. Chi. Wheat 775 811 May. K.C. Wheat 898 925
Freed
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The information and comments contained herein is provided by ADM Investor Services, Inc. (“ADMIS”) and NOT Archer Daniels Midland Company. 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. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of ADM Investor Services, Inc. is strictly prohibited. Again, the information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by Archer Daniels Midland Company. Copyright © ADM Investor Services, Inc.
April 12, 2011
Early calls are lower. Most commodity markets are in the red this morning. Another after shock in Japan had Asian markets lower. Word that China will sell 3 mmt of soybeans from their reserves and continued talk of lower imports is offering resistance to soybean prices. One trading house recommendation to reduce commodity longs is also offering resistance to Crude, Copper and grains. SK is down 8 cents and near 13.59. CK is down 6 cents and near 7.69. WK is down 11 cents and near 7.87. KWK is down 5 cents and near 9.13. Dollar is sharply lower. Crude, coffee, gold, cotton, livestock and copper are lower. Cocoa, sugar, silver and rice are higher. Money flow could weigh on commodity prices but 2011 World wheat and potentially early spring US corn weather may not be bearish. What if the Dakotas do not increase SU corn acres by 2.0 mil? What if US corn yield down not make 161.0? Dalian Sep soybean futures were down 23 cents and near 18.64. Word China will sell 3 mmt from reserves offered resistance. Talk of lower 2011 rapeseed crop is offering support. Dalian Sep corn futures were down 4 cents and near 9.12. French wheat futures are lower with traders watching global demand, 2011 weather and economic outlook for direction. US Midwest weather forecast looks cool and wet across the north areas over the next 10 days. South plains continue to look mostly dry. Europe and China wheat areas still look dry. Wet weather could still slow plantings in Canada, Traditional funds sold 7,000 soybeans on Monday and are net long 111,000 soybeans, 19,700 soymeal (-2) and 58,000 soyoil (-4). Funds bought 10,000 corn and are net long 332,000 corn. Funds were net buyers of 2,000 Chicago wheat and are net long 26,000 wheat contracts. Index funds are estimated to be net long 123,600 soybean contracts (-1), 78,000 soyoil(unch), 15,000 soymeal(-2), 272,700 corn(-2), and 173,500 wheat(-2). Commercials are short 537,000 corn (+27), 179,200 wheat (+7) and 228,000 Soybeans (+8). Support Resistance May. Beans 1350 1372 May. Bean Oil 5815 5897 May. Meal 347.90 356.30 May. Corn 758 785 May. Chi. Wheat 775 811 May. K.C. Wheat 898 925
Freed
141 West Jackson Blvd. Suite 1600A Chicago, IL 60604 www.admis.com
The information and comments contained herein is provided by ADM Investor Services, Inc. (“ADMIS”) and NOT Archer Daniels Midland Company. 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. This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Any reproduction or retransmission of this report without the express written consent of ADM Investor Services, Inc. is strictly prohibited. Again, the information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by Archer Daniels Midland Company. Copyright © ADM Investor Services, Inc.
