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ADMISI London Wheat Report for 10 May

London Wheat Report

chart LWR-2023-05-10

Source: FutureSource 

The Kremlin said on Wednesday that Russia’s stance on the Black Sea grain deal – that its own interests must be taken into account in talks aimed at extending it beyond May 18 – was understood by all relevant parties. Apparent talks are set to take place this week between the four parties involved in the continuation of the grain deal. “Work is underway. Our position is well known… and consistent,” Kremlin spokesman Dmitry Peskov told reporters. “So, let’s wait for the outcome of the negotiations.”

Export prices for Russian wheat weakened amid continued high export volumes, uncertainty surrounding the Black Sea grain deal and in anticipation of a new crop, analysts said on Wednesday. Prices for Russian wheat with 12.5% protein content, delivered free on board (FOB) from the Black Sea in June, were $254 a tonne, down $11 from last week, the IKAR agriculture consultancy said.

Japan is heading to Tender for 60K tonnes of Feed and 20K tonnes of barley in and buy and sell auction on May 17th 2023. The grains are to arrive in Japan by October 26th 2023. According to Reuters ‘’ Japan buys and sells its feed wheat and barley via so-called SBS auctions, in which end-users and importers specify the origin, price and quantity of grain, allowing millers to meet their varied needs for the feed grain.’’

Soft wheat exports from the European Union in the 2022/23 season that started last July reached 26.49 million tonnes by May 7, up 11% compared with 23.87 million a year earlier, data published by the European Commission showed on Wednesday. EU barley exports so far in 2022/23 totalled 5.45 million tonnes, down 19% from 6.72 million a year ago.

European and London Wheat began the day as it has for a while now, in the red. Before turning a corner after lunch and finding support, all be it just a little. Matif ended the day down after its brief upturn, as did London. London Wheat had a quieter day than yesterday. Nov 23 saw 148 lots cross the line between £195.50 and £197.00. May 23 didn’t trade, open interest still stands at 5 lots. July had a market as it has done for some time but was untraded. There were some late trades going through on May 24 @ 204.50, only 10 lots at 75p off yesterday sett. Nov 24 was the only month to finish up and traded @ 200 all day which is 50p above last night’s sett.

Reminder there is a USDA Supply and Demand report on Friday at 5pm UK time.

Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team

Hanne Bell, Ryan Easterbrook, Dominic Enston and Aaron Stockley-Isted

Phone: +44 (0)20 7716 8477  or  +44 (0)20 7716 8140      Email: intl.grains@admisi.com

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© 2023 ADM Investor Services International Limited3

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.                  

A subsidiary of Archer Daniels Midland Company.

© 2021 ADM Investor Services International Limited.

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.

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