Written Commentary
London Wheat Report
Source: FutureSource
Grains saw strong support today with Chicago wheat hitting a 2 week high on the back of weather concerns as they dry pocket in the US southern plains are reducing the likelihood that we see any condition ratings increase over the next couple weeks. News coming out of Ukraine is more of the Russian offensive in the east and a mixed opinion toward what the wheat harvest will equate to this summer with quite a broad range of estimations ranging from 20% lower to 40% lower on last year. Last year, 30.3Mmt of wheat was harvested in Ukraine. Russian wheat exports hold steady, led by Turkey, Iran and Egypt. China has sold 528kt of wheat from reserves with a clearance rate at 95%. President Xi is calling for the seed industry to gain more independence after seeing the effects following on Russia’s special operation in Ukraine. Algeria purchased 50kt of milling wheat. Jordan will again be on the block for their 120kt of milling wheat along with 120kt of Barley. Jordan have not had a successful wheat tender since the war began so they need to pull the trigger sooner rather than later. More and more market pundits are realising that Ukraine will be hard-pressed to ship any more than 600kt/month of grain by rail which is unsurprising with the issues that are being faced. Matif May-22 settled up €6.75 on Friday at €379.50/t. London followed Paris higher. China were on a buying spree for corn today, purchasing a cheeky 1.02Mmt amount to 680kt old crop and 340kt new crop. Much of this is due to the fact they can’t access their corn sat in Ukraine. Demand for US corn seems good. Corn cooled off in Chicago slightly with May-22 futures trading down 5 cents at time of writing. |
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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.
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