Weekly Review Of Agriculture Markets - Wednesday, June 17

Weekly Chicago Soybeans Futures:

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Weekly Chicago Soybean Meal Futures:

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Rice

Rice was a little higher in new crop months and much lower in old-crop July. July started to collapse a week ago as the funds initially bought the market and then were forced to sell. The selling continued for most of the week last week, but July managed to close limit up on Friday. New crop months were relatively little changed as new crop prospects appear solid for increased production in the coming year. The funds were initially buying the old crop futures on ideas of supply tightness and started to buy again on Friday for the same reason. The combination of good export buying in general and the buying inside the US due to the Coronavirus has made the market short Rice. There are ideas that the mills are well covered into new crops, but little Rice is available from producers. The crops that got planted are in very good condition in the south and near the Gulf Coast but planting has been problematic in parts of Mississippi, Arkansas, and Missouri. Ideas are that the long grain will get planted and producers will not plant medium grain if some prevent planting is needed.

Weekly Chicago Rice Futures:

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Palm Oil and Vegetable Oils

World vegetable oils markets were mixed last week. Palm Oil closed higher after news of renewed demand interest from India and China and on reports of less production from Malaysia.SGS reported improved exports in its data last week. Palm Oil has been hoping for better demand from importers as world economies slowly open after being closed by the Coronavirus epidemic. Indonesia continues to focus its Palm Oil on the internal demand for biofuels.  Soybean Oil was lower last week and Canola was higher. Canola fell initially on improved growing conditions in the Canadian Prairies. Canola has found support from the weaker Canadian Dollar. Canola is more of a food oil than the others, although it also has biofuels uses. The weather has been warmer in the past couple of weeks after weeks of cold and wet weather.

Weekly Malaysian Palm Oil Futures:

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Weekly Chicago Soybean Oil Futures:

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Weekly Canola Futures:

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Cotton

Cotton closed lower bet held support on the weekly charts. Signs of an improving economy in the US and around the world really helped ideas of better Cotton demand as did reports of a lot of masks being made for use during the Coronavirus epidemic. There is concern that China will stop fulfilling its obligations in the Phase One trade deal due to ramped-up US rhetoric on the Chinese response to the Coronavirus epidemic and now the unrest in Hong Kong. The world is starting to slowly recover from the Coronavirus scare and some stores are starting to open again after being closed for weeks. The retail demand has been slow to develop as many consumers got hurt economically due to stay at home orders during the height of the pandemic and have little disposable funds to spend on clothes. Demand will slowly improve but the industry should have plenty of supplies to work within the short term. The US weather situation is mixed, with good rains noted in the Southeast and good conditions in the Midsouth. However, it has been very hot and dry in West Texas, and crops there are suffering.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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