Written Commentary
London Wheat Report
Source: FutureSource
Global wheat markets found support in today’s trading with an influx of tenders hitting the market. Chicago Mar-22 was trading up 6 cents at time of writing. Turkey’s TMO came in hot announcing a tender for 335kt of milling wheat for Feb-March shipment. Iran has issued another tender for an unspecified amount of wheat after previously purchasing German wheat in its most recent tender. Algeria have issued a tender for 50kt of milling wheat with a deadline for Jan-13th. Algeria often buys considerably more in its tenders than the nominal volume sought so well worth watching to see both volume and origin. South Korea’s Major Feed mill Group purchase 55kt of Australian feed wheat. China has surpassed Indonesia as the world’s leading importer of Australian week according to Australian wheat export figures published for November 2021.
CBH group, Western Australia’s primary grains co-operative, has received a record breaking 21Mmt of grains this season to date. An amazing element is that CBH have added an additional 2.3Mmt of emergency storage or a total of 10% of total storage capacity for this harvest. Astounding really. Russian export tax calculation has hit $100/t. European soft wheat exports so far this season have reached 15.11Mmt by Jan 9th according to weekly official customs data, a 1Mmt jump on previous update due to missing French data. Matif Mar-22 wheat settled up €0.90 on yesterday at €217.90/t. It was also the first trading day for Euronext’s Durum wheat contract although not a single lot appeared to have been traded. London wheat followed global market support settling up on yesterday.
USDA announced 100kt sale of beans to Mexico. Conab released their new estimates with no major surprises for the trade. Brazilian bean production cut by 2.4Mmt to 140.5Mmt and corn production was pegged at 112.9Mmt with 80% of that production yet to be planted, down 4.2Mmt on prior estimates. Ukrainian corn production has been increased to 40.5Mmt or up 1.3Mmt from prior estimate. EU maize imports so far this season were at 7.72Mmt against 9.2Mmt a year ago. Matif Mar-22 maize settled up €1.75 on yesterday at €244.75/t.
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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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