Written Commentary
London Wheat Report
Source: FutureSource
Soybeans remained the focal point of the oil complex in today’s trading, hitting trading highs of $15.94 before cooling back down to circa $15.80 at time of writing. Forecasts remain supportive in South American row crops with traders starting to look at the extent which the Argentine corn crop will be reduced by. After yesterday’s CONAB estimate, combined with WASDE data, an estimate for the total Soybean crop in South America will be around 175Mmt, which is the lowest level it has been at since the 17/18 marketing year. Fundamentally, soybean market does lean supportive but it is also worth watching what the impact of the rate hike could be on the funds and their position in beans. 108kt of new crop beans sold to China, 128kt old crop corn to Japan and 30kt of new crop bean oil to unknow was reported by the USDA today. Matif rapeseed continues to find support, Brent Crude was trading up around 1.5% on yesterday at circa $92.85/ba at time of writing. Matif May-22 settled up €5.25 on yesterday at €691.50/t.
Matif wheat continued to find support as continued tensions between Russia and Ukraine kept attention on possible disruption to Black Sea grain shipments. Matif Mar-22 settled up €7.25 on yesterday at €268.75/t. US comments put the risk of conflict supposedly back onto the agenda although the interpretation of this can be debated. Either way, the markets reacted accordingly. Traders reiterated today that Russian Naval drills have not impacted upon the grain trade as of yet. Aside from ongoing demand from Morocco, French wheat was seen as best placed to capture extra EU exports as rising maize prices made wheat more attractive for livestock feed makers. London wheat found support.
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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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