20180605 Soybean Futures Technical View

Soybean Technical: 

Could test further downside if defense near 993 level fail. 

Else, might rebound.

Stock & Commodities Related News.

US STOCKS-Wall St set for flat open as trade worries offset tech glow - Reuters News

05-Jun-2018 09:13:20 PM

• Twitter jumps on addition to S&P 500 index
• Francesca's Holdings drops after Q1 results
• Mylan gains as biosimilar gets FDA nod

Adds comment, details; Updates prices

By Medha Singh

June 5 (Reuters) - U.S. stock indexes were on track for a flat open on Tuesday, as a surge in technology stocks, that had pushed Nasdaq to a record close, was offset by trade concerns.

A strong gain in technology stocks on Monday, led by Apple, Microsoft and Amazon, boosted investment sentiment, which had already got a lift from the recent strong jobs data.

However, U.S. equity futures gave little indication if the gains would hold. U.S. President Donald Trump may seek separate talks with Canada and Mexico in a bid to get individual trade deals with the two countries, White House economic adviser Larry Kudlow said on Tuesday.

"The market is a little bit on edge when it comes to trade talks," said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.

A relentless rally in stocks last year, that sent the main U.S. indexes to record highs almost every other week, came to a halt in late January on issues ranging from rising interest rates, trade concerns to geopolitical issues.

However, strength in the U.S. economy, as shown by the latest jobs report, helped investors shift their focus back to fundamentals.

"The carry-over from Friday, with the strong employment report, is a fact that a lot of people have been light on their equity holdings and they're using this report as a reason to get back."

At 8:55 a.m. ET, Dow e-minis were up 1 points, or 0 percent. S&P 500 e-minis were up 0.25 points, or 0.01 percent and Nasdaq 100 e-minis were up 10.5 points, or 0.15 percent.

Mexico is set to impose a 20 percent tariff on U.S. pork imports, sources told Reuters, in response to Trump's tariffs on steel and aluminum levied last week.

Later this week Canada plays host to the G7 summit with six of the seven members outraged at the United States over a slew of recent moves by Trump.

Twitter gained 4 percent in premarket trading on the social network's inclusion in the benchmark S&P 500 index. Netflix, which is set to join the S&P 100, rose marginally.

Accessories and apparel retailer Francesca's Holdings fell 13 percent after first-quarter revenue came in below analysts' estimates.

Starbucks dropped 1 percent after Executive Chairman Howard Schultz, who built the coffee chain into a global powerhouse, decided to step away.

Mylan rose 4.4 percent after U.S. health regulators approved its biosimilar to Amgen Inc's blockbuster drug, Neulasta.

In economic data, ISM's non-manufacturing PMI for May is due at 10:00 am ET. It is expected to have increased to 57.5 from a prior reading of 56.8.

(Reporting by Shounak Dasgupta in Bengaluru)

 

 

 

PRECIOUS-Gold holds steady, but upbeat economic outlook a threat - Reuters News

05-Jun-2018 08:59:38 PM

• Spot gold targets low of $1,281.76/oz -technicals
• Palladium off six week highs hit on Monday

(Recasts, updates prices, adds details)

By Maytaal Angel

LONDON, June 5 (Reuters) - Gold prices were little changed on Tuesday as the dollar steadied near a six month high, but upside in the precious metal was firmly capped by bullish global economic fundamentals.

Investors are awaiting economic data that might confirm the U.S. economy is on track for a strong quarter, with rising bond yields also supporting the greenback and making dollar priced gold costlier for non-U.S. investors.

U.S. gold futures for August delivery were flat at $1,297 per ounce.

"Prices have been dropping since May in anticipation of a Fed rate hike. There's still some strengthening of the dollar to come. Geopolitics is on the backburner," said Bernard Dahdah, precious metals analyst at Natixis.

Stronger-than-expected U.S. jobs data released on Friday fuelled expectations that the Federal Reserve would raise interest rates at its policy meeting starting on June 12.

Higher interest rates tend to boost the dollar and reduce investor interest in non-yielding bullion.

A strong reading on ISM non-manufacturing PMI for May later this session will seal the case for another Fed rate hike, following up on a rate hike in March and might even prompt the central bank to strike a hawkish stance.

"There is lack of interest in gold. It is more interesting for equities and people are making profit there, so nobody wants to trade in gold for the time being," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Global stocks hit a record high on Tuesday, spurred on by a new all-time peak for Apple, a 17-year top for European tech firms and news that Twitter and Netflix were set to join Wall Street's flagship S&P 500 index.

Rising equity markets tend to signal strong investor risk appetite, weighing on gold, seen as a safe haven asset.

Spot gold is still targeting the May 21 low of $1,281.76 per ounce, as its bounce from this level has completed, according to Reuters technical analyst Wang Tao.

In other precious markets, silver rose 0.3 percent to $16.42 an ounce.

Platinum fell 0.7 percent to $894.20 an ounce. It earlier hit a low of $888, the lowest since May 21.

Palladium was 0.6 percent lower at $988.80 per ounce after hitting a six-week high of $1,010.50 the previous session.

 

(Additional reporting by Karen Rodrigues and Swati Verma in Bengaluru
Editing by Alexandra Hudson and Alexander Smith)

 

 

 

CBOT Trends-Wheat up 7-9 cents, corn up 2-3, soybeans up 1-2 - Reuters News

05-Jun-2018 09:22:49 PM

CHICAGO, June 5 (Reuters) - Following are U.S. trade expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Tuesday.

NOTE: Mexico responded in kind to U.S. President Donald Trump's metals tariffs by imposing its own duties on American steel, while also targeting politically sensitive agricultural products from pork to bourbon.

WHEAT - Up 7 to 9 cents per bushel

• Higher on a technical bounce following Monday's 3.4 percent slide in the CBOT July contract. Worries about poor yield prospects in the Black Sea region and Australia add support.
• Rally limited by seasonal pressure from the start of the U.S. winter wheat harvest.
• The U.S. Department of Agriculture late Monday said the U.S. winter wheat harvest was 5 percent complete. The USDA also rated 37 percent of the U.S. winter wheat crop in good to excellent condition, down from 38 percent the previous week.
• The USDA rated 70 percent of the U.S. spring wheat crop as good to excellent, near the average analyst expectation of 71 percent.
• CBOT July soft red winter wheat last up 9 cents at $5.14-1/4 per bushel. K.C. July hard red winter wheat last traded up 9-3/4 cents at $5.31-1/4 and MGEX July spring wheat was up 7 cents at $6.00-1/4 a bushel.

CORN - Up 2 to 3 cents per bushel

• Corn heading higher in a technical bounce after the July contract hit a two-month low at $3.80 in early moves. Upside momentum capped by mostly favorable U.S. weather and strong crop condition ratings.
• Traders eyeing chart support at the July contract's 200-day moving average at $3.82.
• The USDA late Monday rated 78 percent of the corn as good to excellent, down from 79 percent a week earlier but still among the highest U.S. corn ratings for this time of year in records dating to the 1980s.
• CBOT July corn last traded up 3 cents at $3.83-3/4 a bushel.

SOYBEANS - Up 1 to 2 cents per bushel

• Soybeans higher in a technical bounce after the CBOT July contract set a two-week low below $10 in early moves. Rally capped by favorable U.S. growing conditions and uncertainty about U.S. trade tensions with China, the world's top soy importer.
• The USDA late Monday rated 75 percent of the U.S. soybean crop as good to excellent, above an average of analyst expectations of 74 percent.
• India is considering raising import tax on some edible oils, government sources said.
• CBOT July soybeans last up 2 cents at $10.03-3/4 per bushel.

 

(Reporting by Julie Ingwersen)

 

 

 

VEGOILS-Palm hits near 1-month low on weak exports - Reuters News

05-Jun-2018 07:07:10 PM

• Malaysia's June exports could be lower than May
• Palm trims losses on report India will hike import duty on soft oils
• Palm falls 4.7 pct in 2018 after shedding 20 pct last year

Updates with closing prices

By Rajendra Jadhav

MUMBAI, June 5 (Reuters) - Malaysian palm oil futures extended declines on Tuesday to hit their lowest in nearly a month, weighed down by lacklustre export demand, but they trimmed losses in the second half of the trading session on reports India will raise an import tax on soft oils.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.37 percent at 2,400 ringgit ($604.53) a tonne by the close. Earlier in the session, the contract hit 2,382 ringgit, its lowest since May 8.

Trading volume stood at 33,099 lots of 25 tonnes.

"Ramadan buying has fizzled out. Fresh export orders are not coming in at the expected pace," a Kuala Lumpur-based palm trader said.

Buyers typically stock up on palm oil a month before Ramadan, which began in mid-May this year.

Malaysia's palm oil exports in May dropped 8.8 percent from April to around 1.2 million tonnes, independent inspection company AmSpec Agri Malaysia said last week.

Cargo surveyor Societe Generale de Surveillance (SGS) said the country's May palm oil exports fell 9.9 percent from a month ago.

In Indonesia, the world's top palm oil exporter, shipments of palm and palm kernel oils plunged 13.6 percent in April, data from the Indonesia Palm Oil Association showed.

"If the current trend continues, then Malaysia's June export numbers could be lower than May," another Kuala Lumpur-based palm trader said.

The market pared losses later in the session on reports India could raise an import duty on soft oils like soyoil, making palm competitive, the dealer said.

Indian farm secretary said an import duty on soft oils could be raised in a week.

In related vegetable oils, the Chicago July soybean oil contract was down 0.2 percent, while September soybean oil on China's Dalian Commodity Exchange dropped up to 1.25 percent.

Palm oil is affected by movements in rival edible oils as they compete for a share in the global vegetable oils market.

Palm oil may break a support at 2,408 ringgit per tonne and fall to the next support at 2,364 ringgit, as suggested by a retracement analysis, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

Palm oil inventories in Malaysia, the world's second-largest producer, are expected to slip to an eight-month low in May, weighed down by a decline in production, according to a Reuters poll.

 

Palm, soy and crude oil prices at 1100 GMT
Contract	Month	Last	Change	Low	High	Volume
MY PALM OIL	JUN8	2404	-9.00	2384	2407	373
MY PALM OIL	JUL8	2399	-7.00	2379	2406	2,186
MY PALM OIL	AUG8	2400	-7.00	2382	2410	14,060
CHINA PALM OLEIN	SEP8	5022	-100.00	4992	5092	410,950
CHINA SOYOIL	SEP8	5832	-74.00	5754	5888	693,504
CBOT SOY OIL	JUL8	30.86	5.40	30.71	30.97	7,285
INDIA PALM OIL	JUN8	646.60	5.40	636.40	649.80	1,614
INDIA SOYOIL	JUN8	755.00	4.55	746.10	759.95	17,430
NYMEX CRUDE	JUL8	64.52	-0.23	64.43	65.29	154,338
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel

 

 

($1 = 3.9700 ringgit)

($1 = 6.4108 Chinese yuan)

($1 = 67.2000 Indian rupees)

 

(Reporting by Rajendra Jadhav, Editing by Sherry Jacob-Phillips and Jane Merriman)

 

 

 

U.S. asks some OPEC producers to pump more oil, no specific figure – sources - Reuters

05-Jun-2018 09:13:56 PM

DUBAI/LONDON, June 5 (Reuters) - The United States has unofficially asked Saudi Arabia and some other OPEC producers to raise oil output, three OPEC and industry sources said on Tuesday, although it has not requested a specific figure.

Earlier on Tuesday, Bloomberg reported that the U.S. government had asked them to increase oil production by about 1 million barrels a day (bpd).

 

(Reporting by Rania El Gamal and Alex Lawler; editing by Louise Heavens)

 

 

UPDATE 4-Oil nears one-month low on report U.S. asked OPEC to raise supply - Reuters News

05-Jun-2018 07:01:07 PM

• Market focuses on oil supplies, OPEC meeting on June 22
• U.S. asked OPEC for 1 mln bpd output hike - Bloomberg

Updates throughout

By Amanda Cooper

LONDON, June 5 (Reuters) - Brent crude futures hit their lowest in close to a month on Tuesday following a report that the U.S. government had asked Saudi Arabia and other major exporters to increase oil output.

International benchmark Brent was down $1.09 by 1040 GMT at $74.20 a barrel, its lowest since May 8. U.S. West Texas Intermediate crude fell 21 cents to $64.54.

The U.S. government has asked Saudi Arabia and some other OPEC producers to increase oil production by about 1 million barrels per day (bpd), Bloomberg reported on Tuesday, citing people familiar with the matter.

The request comes after U.S. retail gasoline prices surged to their highest in more than three years and President Donald Trump publicly complained about OPEC policy and rising oil prices.

It also follows Washington's decision to reimpose sanctions on Iran's crude exports that had previously displaced about 1 million bpd from global markets, the report said.

"With the midterm elections coming up, obviously he wants lower gasoline prices, but at the same time, he's alienating himself from the rest of the world ... so is anybody, apart from Saudi Arabia, maybe going to listen, or comply or cooperate?" PVM Oil Associates strategist Tamas Varga said.

"This seems to be an intervention in OPEC's supply policy ...(the U.S.) walks away from the Iran (nuclear) deal, which pushes up oil prices and less than a month later, demands producers raise production ... this story is Trump-esque."

The Organization of the Petroleum Exporting Countries meets in Vienna on June 22 to decide whether the group and non-OPEC producers, including Russia, should raise output to make up for any supply shortfall from Iran and Venezuela.

Saudi Arabia and Russia were already discussing raising OPEC and non-OPEC oil output by around 1 million bpd, sources familiar with the matter said on May 25.

Global oil supply has tightened with the OPEC-led production cuts that began in early 2017.

"(The output decision) is going to be the main event of the month and the main input for the second half of the year, so any change in OPEC policy is a big event," Petromatrix strategist Olivier Jakob said.

Fund managers this year racked up a record bet on a continued rise in oil prices, but the sustained increase in U.S. shale production and now the prospect of higher OPEC supply have prompted many investors to pare those positions.

 

(Additional reporting by Chung in SEOUL and Roslan Khasawneh in SINGAPORE; Editing by Dale Hudson)

 

 

 

FOREX-Dollar heads towards 6-month highs as trade war fears rise - Reuters News

05-Jun-2018 08:19:34 PM

• Strong ISM data would seal case for a U.S. rate hike next week
• Mexican peso leads losers on trade war concerns

By Saikat Chatterjee

LONDON, June 5 (Reuters) - The dollar on Tuesday edged towards a six-month high hit last week as the latest bout in a trade war between the U.S. and its commercial partners prompted selling in emerging market curencies, but gains were capped before a summit this weekend.

Markets were also awaiting data that might confirm the U.S. economy is on track for a strong June quarter, lifting Treasury yields as well as giving the dollar an additional boost.

"I am surprised the latest round of trade tariffs hasn't fuelled a bigger drop in other currencies as this basically signals inflationary pressures will rise in the U.S. and prompt the Fed to raise interest rates more," Commerzbank FX strategist Esther Maria Reichelt said.

Against a basket of currencies, the dollar climbed 0.1 percent at 94.13. It hit 95.02 last week, its highest since early November 2017, and has risen more than 5 percent since mid-April.

The Mexican peso and the Canadian dollar led losers against the dollar as trade war concerns rose.

Mexico said it will impose a 20-percent tariff on U.S. pork imports after U.S. President Donald Trump slapped tariffs on steel and aluminium.

The tariff was in response to the Trump administration's decision last week to impose steel and aluminum tariffs on Mexican exporters on grounds that countries including Mexico engage in competition damaging to U.S. national security.

The U.S. decision to go ahead with the steel and aluminum tariffs has complicated talks with Mexico and Canada to rework the North America Free Trade Agreement (NAFTA). I

ING strategists said in a note the latest moves by Mexico might prompt Trump to pull out of NAFTA altogether.

With correlations between short-dated U.S. bond yields and the dollar strengthening to their strongest since January 2017, investors have responded by buying the greenback in recent days, especially against the euro and emerging market currencies.

Short-dated U.S. Treasury yields are up by about 20 basis points (bps) in a week, pushing two-year government yields to 2.50 percent and within a whisker of a decade high of the 2.59 percent hit last month.

"The dollar is perched around some important levels and its strength can be judged from the fact that the euro/dollar has failed to break above the $1.17 line despite falling Italian political concerns," Societe Generale strategist Kenneth Broux said.

EURO ZONE CONCERNS

The dollar's strength was also helped by the euro's lingering weakness with latest headlines offering little evidence that Italy would stick to a path of fiscal restraint.

Bond yields rose on Tuesday, after new Italian Prime Minister Guiseppe Conte promised to bring radical change as he sought parliamentary backing for an anti-establishment government.

The euro was broadly flat at $1.16930. Since hitting a 10-month low of $1.1510 a week ago, it has recovered somewhat as investors took comfort from the formation of a coalition government in Rome.

However, market moves were muted before a Group of Seven summit starting on Friday.

The June 8 to June 9 meeting in Canada will begin with a working session on economic growth and trade - topical issues after Trump's imposing the steel and aluminium tariffs.

Strong U.S. employment data published on Friday has revived bets that the Federal Reserve will raise interest rates three more times this year. Market expectations are for two further rate hikes before until December.

A strong reading on ISM non-manufacturing PMI for May later in the day might seal the case for another rate hike at its policy meeting next week, following up on a rate hike in March and might even prompt the Fed to take a hawkish stance.

"The U.S. jobs data was really strong. The Fed could indicate it will raise rates four times this year, including an expected hike in June and one in March," Daiwa senior currency strategist Yukio Ishizuki said.

 

(Reporting by Saikat Chatterjee; Additional reporting by Hideyuki Sano in TOKYO
Editing by Louise Ireland)

Stock & Commodities Related News.

US STOCKS-Wall St set to open higher after strong jobs data - Reuters News

01-Jun-2018 09:16:24 PM

• U.S. economy adds 223,000 jobs in May vs est. 188,000
• Unemployment rate falls to 3.8 pct
• Costco down after results
• Futures up: Dow 0.66 pct, S&P 0.55 pct, Nasdaq 0.47 pct

Adds comment, details; updates prices

By Medha Singh

June 1 (Reuters) - Wall Street was set to open higher on Friday as Italy's political crisis subsided, while investors assessed a stronger-than-expected U.S. jobs report.

Nonfarm payrolls increased by 223,000 jobs in May, the Labor Department said, while the average hourly earnings rose 0.3 percent after edging up 0.1 percent in April.

Economists polled by Reuters had forecast jobs increasing by 188,000 jobs and a 0.2 percent rise in wages.

The numbers cemented expectations that the Federal Reserve will raise interest rates in June, as the unemployment rate dropped to an 18-year low of 3.8 percent, pointing to rapidly tightening labor market conditions.

U.S. equity futures pulled back slightly before rising higher, with shares of big U.S. banks gaining between 1.2 percent and 1.6 percent.

"The really good news for markets is the average hourly earnings continues to be very steady and does not signal a buildup in inflationary pressures, so overall a very solid report," said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

Markets got a reprieve overnight as Italy's anti-establishment parties revived coalition plans, removing the risk of a repeat vote dominated by debate over the country's future in the euro zone.

However, investors are keeping an eye out on developments around trade after Washington on Thursday imposed steel and aluminum tariffs on Canada, Mexico and EU.

Canada and Mexico hit back on Thursday with duties on U.S. goods ranging from orange juice to pork and the European Union was looking to tax bourbon whiskey and Harley motorcycles after on the countries.

At 8:57 a.m. ET, Dow e-minis were up 161 points, or 0.66 percent. S&P 500 e-minis were up 15 points, or 0.55 percent and Nasdaq 100 e-minis were up 33 points, or 0.47 percent.

Among stocks, warehouse club operator Costco fell 1.9 percent in premarket trade as higher freight costs dented its quarterly gross margins.

 

(Reporting by Medha Singh in Bengaluru)

 

 

 

PRECIOUS-Gold slips after upbeat U.S. payrolls data - Reuters News

01-Jun-2018 09:27:13 PM

• U.S. economy adds 223k jobs in May, beating forecasts
• Dollar jumps as data shores up U.S. rate hike view

 (Releads, updates prices, adds comment)

By Jan Harvey

LONDON, June 1 (Reuters) - Gold fell on Friday after stronger than forecast U.S. payrolls data boosted expectations that the Federal Reserve will press ahead with another U.S. interest rate hike this month, lifting the dollar.

The metal is highly sensitive to rising rates, which increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

Spot gold was down 0.3 percent at $1,294.06 an ounce by 1322 GMT, having earlier edged just above $1,300 an ounce. U.S. gold futures for August delivery were down 0.4 percent at $1,298.90 an ounce.

The dollar rose against the euro and Treasury yields hit session highs after the payrolls report showed the U.S. economy added 223,000 jobs last month, well ahead of expectations for 188,000 jobs.

The stronger dollar is not playing in favour of higher gold prices, Capital Economics analyst Simona Gambarini said.

"There is not much interest at the moment in getting into the gold market, with the Federal Reserve meeting just (a short way) away," she said. "Investors are waiting to see whether the Fed will hike rates again, and what their take on inflation and those risks in Europe and with trade will be."

While the euro failed to sustain gains it made earlier against the dollar after the apparent end of a political crisis in Italy that had rattled markets this week, world stocks stayed in the black as investors welcomed the Italian deal.

However, investors remain concerned over a trade stand-off between the United States and its trading partners, which deepened on Thursday after the U.S. went ahead with tariffs on aluminium and steel imports from Canada, Mexico and the European Union, ending a two-month exemption.

While a worsening global trade situation could benefit gold if it curbs appetite for assets seen as higher risk, it is not yet offsetting the negative impact of an expected increase in rates, and the effects of that on the dollar.

"While geopolitics are dominating the headlines, neither renewed trade tensions nor the crisis in Italy ignited safe-haven demand for gold," Julius Baer said in a note on Friday.

"Prices continue to follow the US dollar, leaving gold in 'currency mode' rather than 'commodity mode'."

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, fell 0.52 percent to 847.03 tonnes on Thursday.

Among other precious metals, silver was up 0.6 percent at $16.45 an ounce, while platinum was 0.6 percent higher at $907.10 an ounce and palladium was up 0.7 percent at $991.60 an ounce.

 

(Additional reporting by Karen Rodrigues in Bengaluru Editing by Mark Heinrich/David Evans)

 

 

 

CBOT Trends-Wheat down 5-6 cents, corn up 1-2, soybeans up 3-4 - Reuters News

01-Jun-2018 09:24:08 PM

CHICAGO, June 1 (Reuters) - Following are U.S. trade expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Friday.

WHEAT - Down 5 to 6 cents per bushel

• Wheat lower in rangebound trade as the U.S. hard red winter wheat harvest gets under way in portions of the southern Plains. Recent hot temperatures in that region have hastened crop maturity.
• Radar shows rains crossing northern U.S. Plains spring wheat belt, which has been dry.
• The U.S. Department of Agriculture reported export sales of U.S. wheat in the latest week at 300,400 tonnes (old and new crop years combined), in line with trade expectations.
• Warm, dry weather in the European Union has boosted wheat crops after a damp, chilly spring, but dryness is now a risk in some zones as wheat enters a key month for determining yields, analysts said.
• CBOT July soft red winter wheat last down 6-1/4 cents at $5.20 per bushel. K.C. July hard red winter wheat last traded down 5-1/2 cents at $5.37 and MGEX July spring wheat was down 1-3/4 cents at $6.10-1/4 a bushel.

CORN - Up 1 to 2 cents per bushel

• Corn modestly higher on bargain-buying after the CBOT July contract fell to a one-month low this week. The contract stayed inside Thursday's trading range in early moves. Traders monitoring forecasts for warm temperatures in the Midwest next week.
• The USDA reported export sales of U.S. corn in the latest week at 1,142,400 tonnes (old and new crop years combined), in line with trade expectations.
• CBOT July corn last traded up 1 cent at $3.95 a bushel.

SOYBEANS - Up 3 to 4 cents per bushel

• Soybeans higher after a three-session slide that pushed the July contract to a 1-1/2 week low on Thursday. Rallies capped by jitters about U.S. trade relations with China, the world's biggest soy buyer, as U.S. Commerce Secretary Wilbur Ross heads to Beijing for weekend trade talks.
• The USDA reported export sales of U.S. soybeans in the latest week at 1,045,000 tonnes (old and new crop years combined), in line with trade expectations.
• The USDA reported weekly soymeal export sales at 143,000 tonnes (old and new crop years combined), in line with trade expectations, and soyoil sales at 6,000 tonnes (all 2017/18), below trade expectations.
• CBOT July soybeans last up 4-1/4 cents at $10.22-3/4 per bushel.

 

(Reporting by Julie Ingwersen)

 

 

 

VEGOILS-Palm rises anticipating lower output growth, gains in soyoil - Reuters News

01-Jun-2018 06:31:43 PM

• Malaysian output seen rising marginally in May-traders
• Weak exports in May caps upside in palm prices
• Palm stockpiles expected to rise in Indonesia, Malaysia

Updates with closing prices

By Rajendra Jadhav

MUMBAI, June 1 (Reuters) - Malaysian palm oil futures rose on Friday tracking rival soyoil and on expectations of a marginal rise in the country's palm oil output, although a fall in exports in May capped the gains.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 0.41 percent at 2,439 ringgit ($613.28)a tonne by the close.

Trading volume stood at 26,414 lots of 25 tonnes each at the break.

"The market rose anticipating lower production growth in Malaysia," a Kuala Lumpur-based palm trader said, adding this is offsetting the impact of lower palm oil exports in May.

Malaysia's palm oil exports in May fell 8.8 percent from April to around 1.2 million tonnes, independent inspection company AmSpec Agri Malaysia said on Thursday.

Meanwhile, cargo surveyor Societe Generale de Surveillance (SGS) said the country's May palm oil exports fell 9.9 percent from a month ago.

In Indonesia, the world's top palm oil exporter, shipments of palm and palm kernel oils fell 13.6 percent in April, data from the Indonesia Palm Oil Association showed.

The stockpiles in producing countries are likely to expand significantly due to subdued exports, said another Kuala Lumpur-based palm oil trader.

In related vegetable oils, the Chicago July soybean oil contract traded 0.58 percent higher, while the December soybean oil on China's Dalian Commodity Exchange nudged up 0.28 percent.

Palm oil is affected by movements in rival edible oils as they compete for a share in the global vegetable oils market.

 

Palm, soy and crude oil prices at 1029 GMT
Contract	Month	Last	Change	Low		High	Volume
MY PALM OIL	JUN8	2442	15.00	2415		2446	480
MY PALM OIL	JUL8	2436	9.00	2413		2447	2,493
MY PALM OIL	AUG8	2439	10.00	2410		2450	15,151
CHINA PALM OLEIN	SEP8	5098	-10.00	5076		5112	241,826
CHINA SOYOIL	SEP8	5862	12.00	5830		5882	469,634
CBOT SOY OIL	JUL8	31.30	-0.60	31.14		31.41	9,597
INDIA PALM OIL	JUN8	652.40	-0.60	647.50		653.00	1,010
INDIA SOYOIL	JUN8	764.80	-1.65	760.25		765.50	10,900
NYMEX CRUDE	JUL8	66.73	-0.31	66.69		67.34	109,151
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel

($1 = 3.9770 ringgit)

 

(Reporting by Rajendra Jadhav; Editing by Amrutha Gayathri and Sunil Nair)

 

 

 

PREVIEW-Saudi Arabia may raise Asia official oil prices in July for a second month - Reuters News

01-Jun-2018 03:28:03 PM

• Arab Light could rise by as much as 40 cts/bbl - survey
• Stronger fuel oil margins support heavier grades

By Florence Tan

SINGAPORE, June 1 (Reuters) - Top oil exporter Saudi Arabia may raise the official selling prices (OSP) for most of the crude grades it sells to Asia in July for a second month, possibly raising flagship Arab Light to its highest since February 2014, trade sources said on Friday.

The OSP hike follows signs of increased demand for Middle East crude oil as refiners gear up for the peak summer oil consumption period and increased buying by Royal Dutch Shell during the price assessment window operated by S&P Global Platts last month.

The premium between first- and third-month cash Dubai benchmark prices widened by 40 cents a barrel during May from April. This backwardation, or when prompt prices for a commodity are higher than those in future months, indicates rising demand for prompt supplies.

Dubai's strength may mean Arab Light's OSP for July could rise by as much as 40 cents a barrel to as much as $2.30 a barrel above the average Oman and Dubai quotes published by Platts, from $1.90 in June, according to a Reuters survey of five refiners and traders.

That would be the highest Arab Light OSP since February 2014 when it was set at $2.45 a barrel, Reuters data showed.

Still, four of the five respondents are hopeful the July price hike will be smaller than 40 cents because of lower jet fuel margins and as a big price hike would make Arab Light uncompetitive against Middle East and Russian grades of similar quality.

"I recommend Saudi to keep the Arab Light price the same because they (unexpectedly) raised the price in May," a crude buyer at a North Asian refiner said.

Asian refiners are also buying record volumes of U.S. crude for arrival in the third quarter to replace Middle East, Russian and African oil after U.S. benchmark grade West Texas Intermediate fell to the widest discount against Brent since early 2015.

In contrast, higher fuel oil margins last month and falling Venezuelan production are supporting higher OSPs for heavier grades.

The July OSP for Arab Heavy crude could rise by between 40 cents to 50 cents a barrel, narrowing the price spread between light and heavy grades, the respondents said.

Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting more than 12 million barrels per day (bpd) of crude bound for Asia.

State oil giant Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi Aramco officials as a matter of policy do not comment on the kingdom's monthly OSPs.

 

Below are expected Saudi prices for July (in $/bbl against the Oman/Dubai average):

                        JUNE        Change         est.JULY OSP

    Arab Extra Light    +3.25     -0.05/+0.15     +3.20/+3.40

    Arab Light          +1.90     +0.00/+0.40     +1.90/+2.30

    Arab Medium         -0.05     +0.30/+0.50     +0.25/+0.45

    Arab Heavy          -1.35     +0.40/+0.50     -0.95/-0.85

    Source: Reuters, trade

 

(Reporting by Florence Tan; Editing by Christian Schmollinger)

 

 

 

UPDATE 6-Brent premium over WTI hits new three-year high - Reuters News

01-Jun-2018 08:33:53 PM

• Record U.S. production drives WTI down for second week
• Market awaiting OPEC meeting on June 22
• Widening WTI-Brent spread lifts demand for U.S. supplies

Updates prices

By Shadia Nasralla

LONDON, June 1 (Reuters) - The spread between Brent crude oil futures contracts and U.S. WTI hit a fresh three-year high on Friday with the latter set for a second consecutive week of declines as U.S. oil output comes close to matching that of top producer Russia.

The premium doubled in about a month as a lack of pipeline capacity in the United States traps much of the output inland.

The spread between the two benchmarks, which climbed above $11 a barrel, had narrowed slightly by 1220 GMT to about $10.95 as Brent erased some of its earlier gains.

U.S. crude production has been rising to record levels since late last year. In March, it jumped 215,000 barrels per day (bpd) to 10.47 million bpd, a new monthly record, the Energy Information Administration said on Thursday.

"The move on that spread is difficult to anticipate as it does not necessarily react to news, headlines," Petromatrix said in a note. "One can be long or short on either of the benchmark and be stopped-out by the volatility of the Brent-WTI."

WTI fell 86 cents to stand at $66.18 a barrel. For the week, WTI was on track for a 2.5 percent fall, adding to last week's near 5 percent decline and shrugging off a 3.6-million-barrel drop in U.S. crude stockpiles last week.

Global benchmark Brent initially stayed within Thursday's range but then fell 69 cents to $76.87 per barrel. It was still set to rise 0.5 percent for the week.

Sources told Reuters last week that Saudi Arabia, the effective leader of OPEC, and Russia were discussing boosting output by about 1 million bpd to compensate for losses in supply from Venezuela and to address concerns about the impact of U.S. sanctions on Iranian output.

This pushed Brent to a three-week low below $75 a barrel on Monday. Brent recovered some ground, however, when a Gulf source flagged that any rise in production would be gradual.

Russia would be able to raise its oil output within months to levels last seen before a global production-cutting deal took effect if there is a decision to unwind the pact, a Russian Energy Ministry official said.

 

(Additional reporting by Roslan Khasawneh and Naveen Thukral
Editing by Louise Ireland and Edmund Blair)

 

 

 

FOREX-Euro snaps 6-week losing streak as Italy concerns wane; data eyed - Reuters News

01-Jun-2018 06:37:48 PM

• Italian bond yields drop on revived coalition deal
• Data dump including payrolls to keep dollar gains capped

By Saikat Chatterjee

LONDON, June 1 (Reuters) - The euro edged higher on Friday and looked set to break a six-week losing streak, supported by a drop in Italian bond yields after a revived coalition deal between two anti-establishment parties pulled the country back from snap elections.

With worries that political turmoil in Italy would roil markets receding, investors have - after strong inflation data this week - shifted their focus back to predicting when will the European Central Bank raise interest rates.

Annual inflation in the 19 countries sharing the euro rose to 1.9 percent in May from 1.2 percent in April, well above expectations for a 1.6 percent increase.

"After the rollercoaster ride in the euro this week, markets are back to focusing on fundamentals and the inflation data will give food for thought to those who are betting on a sustained euro decline," said Marc Ostwald, global strategist at ADM Investor Services International based in London.

On Friday, the single currency edged 0.2 percent higher to $1.1710. On a weekly basis, it is set to climb 0.5 percent, breaking six-week losing streak.

The euro plunged earlier in the week and Italian bond yields soared, with 2-year yields posting their biggest one-day jump in 26 years on Tuesday, on fears that fresh elections in the euro zone's third biggest economy could strengthen the hand of the anti-establishment parties there.

But the past two days have seen some stability with the euro recouping losses thanks in part to renewed efforts to form a government.

A new government in Spain, with the leader of the Spanish Socialist party Pedro Sanchez becoming prime minister, was greeted with relative calm in currency and bond markets.

CAUTIOUS

Investors were also getting more cautious about the dollar's recent move higher -- it hit a 6-1/2 month high against a basket of its rivals earlier this week -- on trade war fears and rising concerns the U.S. economic momentum may soften.

"At these levels, I think the dollar is nearly priced to perfection and we think the euro should see a rebound from later this year," said Paul Baird, head of fixed income at Newton Asset Management, a subsidiary of BNY Mellon which manages $49.8 billion in assets globally.

The dollar was broadly flat at 93.92 against its basket after posting its biggest monthly rise since November 2016 in May.

It chalked up some against the yen, rallying nearly half a percent to 109.27 yen, its biggest daily rise in two weeks.

Risk appetite was muted after the Trump administration slapped tariffs on steel and aluminium imports from the EU, Mexico and Canada, raising risks of a full-blown trade war.

Canada and Mexico retaliated against the United States decision while the European Union had its own reprisals ready to go.

The Canadian dollar stood at C$1.2940 to the U.S. dollar, after falling 0.65 percent the previous day.

The Mexican peso hit a 15-month low of 20.050 to the dollar on Thursday and last stood at 19.85 per dollar.

A heavy slate of data on Friday is also expected to keep investors on the sidelines. The US jobs report for May is expected to show almost 190,000 jobs added, keeping the Fed on track to raise rates later this month.

 

(Reporting by Saikat Chatterjee; Additional reporting by Hideyuki Sano in TOKYO; Editing by Peter Graff and John Stonestreet)

 

 

 

GLOBAL LNG-LNG prices climb to highest since February on limited supply - Reuters News

01-Jun-2018 06:03:21 PM

• LNG prices seasonally highest since 2014
• Continued demand from China is supporting price
• Maintenance in August could further support

By Jessica Jaganathan

SINGAPORE, June 1 (Reuters) - Asian spot liquefied natural gas (LNG) prices rose this week to their highest since February as buying interest from China remained firm and as supply is expected to be limited during maintenance in August.

Spot prices for July delivery in Asia were at $9.60 per million British thermal units (Btu) this week, gaining 40 cents from the previous week and are at the highest for this time of the year since 2014.

Higher oil prices had been deterring some buyers from snapping up cargoes in the spot market in recent weeks but some of them may now need to cover their requirements promptly, two trade sources said.

"Some traders are caught short in July," one of the sources, based in Singapore, said.

While some companies are offering cargoes through private negotiations, supply of the super-chilled fuel is expected to be limited in August amid maintenance at Sakhalin Energy's offshore gas platforms in Russia and at the Angola LNG project.

Indian buyers may be reluctant to buy spot cargoes at higher prices and could turn to using coal instead, a source familiar with the market said.

Demand from China remained firm with some willing to pay $9.70 to $9.80 per million Btu, a trader said. But details of the buyers' purchase, if any, were not immediately clear.

South Koreans are also expected to step up their purchases to meet summer demand, two traders familiar with that market said.

Still, some spot supply from Russia and Argentina could keep prices in check, they added.

Russia's Novatek has offered a cargo in the spot market at prices above the Platts Japan Korea Marker (JKM) price, a trader said.

Argentina's Enarsa has offered eight cargoes for August and September and September in a tender that closes on June 12, while Angola LNG has offered a cargo for loading in mid-June, traders said.

Japan's Inpex Corp said this week that it expects to start gas production from the wellhead for the Ichthys LNG project in Australia within a week or two following the final safety checks.

The company said first shipments of liquefied petroleum gas (LPG), condensate, an ultra-light form of crude oil, and LNG would begin by the end of September.

 

(Reporting by Jessica Jaganathan in SINGAPORE; Editing by Christian Schmollinger)