weekly market report · 6/3/2020 · jvd commodities pty (ltd) weekly market report 2020-06-03 the...

JVD Commodities Pty (Ltd) Weekly Market report 2020-06-03

The information in this document is the view of the author and should not be used for trading purposes. The information does not constitute financial advice.

Weekly Market Report

03 June 2020



USD/ZAR Exchange rate: The rand is currently quoted at R17.10 per US dollar, 33 cents stronger in the last week. The rand has garnered some strength on the back off a weaker dollar. The Americans have been experiencing a difficult time following the death of George Floyd at the hands of the police in Minneapolis which has sparked violent protests in parts of the country. The weaker dollar accompanied by the gradual reopening of the economy has helped the rand regain some of its losses earlier in the year. The rand has broken through the 38.2 Fibonacci retracement of R17.27 and now opens up the 100-day moving average at R16.83 and the 50% level at R16.63 and. The rand along with all emerging currencies will be driven by market sentiment. Progress that is being made in the fight against the Covid-19 pandemic will lead to support of emerging markets and vice versa.



Soya bean meal:

Soya bean meal for Jul 2020 is currently trading at 284.0 dollars per short ton down 0.4 dollars in the last week. Meal prices continue to be under pressure as the covid-19 pandemic raises questions from the demand side. Frictions in relations between the US and China is also supporting uncertainty regarding the trade 1 phase deal and weather China will buy from the US. From the supply side prices remain subdued due to large stock levels. Meal is trading well below all the moving averages so expect prices to remain rangebound at these levels as market participants await new information. Aug 2020 is trading at 286.1



Argentine soya bean meal premiums:

Arg Premiums Sellers Buyers change sellers change buyers

Jun 20 No Sellers Even - -

Jul 20 +5/4 Even - -

* Down * Up



Local Meal Price:

Note: Prices are indicative and are subject to final confirmation.

Date: 2020/06/03 Jun-20 R6 461

Jul-20 R6 483

USD/ZAR 17,1 Aug-20 R6 504

Sep-20 R6 568

Inco Term: FCA Reef/Standerton Oct-20 R6 643

Packaging: bulk Nov-20 R6 691

Payment Terms: 14 days after invoice Dec-20 R6 744

Subject to final confirmation. Prices excl VAT Jan-21 R6 816

Oct-20

Soya oil cake meal 46% protein



Local market:

Jul 2020 Yellow maize:

Jul-20 Sep-20 Dec-20 Jul 2020 change in the last week Sep 2020 change in the last week Dec 2020 change in the last week

White maize 2394 2443 2530 20 20 18

Yellow Maize 2513 2560 2642 13 7 11

Wheat 5287 5050 4797 18 95 0

Sunflower 5635 5739 5863 119 146 131

Soya 6432 6502 6588 175 170 177

* Down * Up



Weather:

Available at: https://portal.bvg.net/storage/24928d6e-9b10-419e-8c60-e172900c8c64.pdf

Notes: Around 93% of the US maize crop has been planted which is up from the 88% reported last week. 74% of the US maize crop could be rated as good/excellent compared to the 70% reported last week. Correspondingly around 75% of the US soybean crop has been planted up from the 65% reported last week. 70% of the US soybean crop could be rated as good/excellent. Midwest: The weather forecast calls for very warm to hot conditions in the Midwest during this week. Crop stress is expected to be minimal due to ample soil moisture. Instead, rapid development of crops is expected. The pattern also features periodic showers, favouring row crop progress. Southern plains: In the Southern Plains, very warm to hot and mainly dry conditions are in store for drought-affected western sectors this week. Eastern sectors have some rain prospect to accompany the warming trend, which will reduce crop stress from heat. Northern plains: Heat builds across the Northern Plains this week. Hotter conditions could lead to stress for emerging and developing crops, but this may come with additional showers as well, which would reduce the stress. Delta: The Delta was dry over the past weekend, allowing for late-stage planting. Isolated showers during mid to late week are indicated, along with a hotter trend.

Acknowledgement: SAWB/GRADS/NASS/DTN/AWB/CWB/Intellicast/FNMOC/Unisys/DTN/NOAA/YR/KBWS/Wunderground/TWC/WordPress/WXRisk/Drovers/TWC/AGBoM/w

eather/Accuweather/spc/NOAA/soybeansandcorn/Windy/agrimoney/agweb/blackseagrain/ec.europa.eu/timeanddate/yr/myweather2/meteox/meteo blue/intellicast/iweathar

Available at: file:///C:/Users/User/Downloads/rmddailyweather%20(21).pdf



ACKNOWLEDGEMENT TO: WXMAPS.ORG

GFS= Global Forecast System

Available at: http://weatherphotos.co.za/rain_wxmaps_sixdays.html

SA Weather: Dry weather is expected through the interior the next 10-days with another cold frontal event reaching the Cape by late Tuesday next week and favourable rain is expected along the southern shores until Saturday next week. Morning Temperatures remains cold with average day temperatures throughout the sub-continent.

Acknowledgement: SAWB/GRADS/NASS/DTN/AWB/CWB/Intellicast/FNMOC/Unisys/DTN/NOAA/YR/KBWS/Wunderground/TWC/WordPress/WXRisk/Drovers/TWC/AGBoM/w

eather/Accuweather/spc/NOAA/soybeansandcorn/Windy/agrimoney/agweb/blackseagrain/ec.europa.eu/timeanddate/yr/myweather2/meteox/meteo blue/intellicast/iweathar

Available at: file:///C:/Users/User/Downloads/rmddailyweather%20(21).pdf

weekly market report · 6/3/2020 · jvd commodities pty (ltd) weekly market report 2020-06-03 the...

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