AM Ag Futures Higher

by Steve Freed,

Grains are higher. SN is up 10 cents and near 8.52. CN is up 3 cents and near 3.28. WN is up 4 cents and near 5.40. US stocks are higher. Crude is higher.  Most commodities are higher. US Dollar is higher. Commodities might be following the bounce in Crude. World economies are dropping but some hope that there will be soon a slow start to recovery. Grains up on China analytical group report that China could soon buy 10 mmt US soybeans, 1 mmt US cotton and 20 mmt US corn for reserves. There is no timeline to the rumor or confirmation. There is some talk of China interest in US soybeans.

US Midwest could see a rain event over the weekend and midweek next week. 2nd week looks drier. Russia and Europe weather looks mostly dry.

USDA announced this week that starting in Sep, they will adjust final corn crop number in the Sep grains stocks report versus Jan the following year. USDA is already revising the soybean crop in Sep.

Weekly US soybean export sales are estimated near 300-750 mt versus 245 last week, corn sales near 600-1,100 mt versus 90 last week and wheat 100-300 mt old crop versus 178 last week.US new crop wheat sales are estimated near 200-500 mt versus 419 last week.

USDA attaché estimated Australia wheat crop near 23.0 mmt versus 15.2 last year. USDA also estimated the Ukraine corn crop near 35.2 mmt versus 35.8 previous. USDA estimated Argentina wheat crop near 20.2 mmt versus 19.5 and exports near 13.4 versus 13.5 previous. They estimated Argentina corn crop near 38.5 mmt versus 50.0 and exports 34.0 versus 35.5.

On Wednesday, Managed Money were  sellers of 3,000 wheat , bought 18,000 corn, bought 4,000 soybeans and sold 3,000 soymeal and bought 3,000 soyoil We estimate Managed funds are net long 22,000 contracts of SRW Wheat; net short 161,000 Corn; net long 4,000 Soybeans; net long 4,000 lots of Soymeal and; net short 14,000 Soyoil.

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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.