Written Commentary
London Wheat Report
Source: FutureSource
US grains oilseeds were firm early on and turned weaker into the pause on optimism announced by Vlad that Russia and Ukraine can find a path towards peace, still quite a way to go and no sign of a ceasefire as of yet. While there is hope that things can be agreed and the prospects of a resolution would go a long way to clearing up the situation, it would still take a few weeks to get the Black Sea ports in Ukraine back online. How the internal infrastructure will fare at the hands of Russian gung-ho artillery is also to be determined.
Chicago May-22 enjoyed quite a trading range again today with a trading low of 1043.25 and a trading high of 1126.25 at time of writing before last trading up 8 cents at 1095. Matif May-22 wheat also had a €13.50 trading range today before settling up €2.50 on yesterday at €370.75/t. French soft wheat ratings are quite good at 92% gd/ex but down from last week according to FranceAgriMer. French spring barley planting hits 76%, grain quality is reported to be good. Taiwan’s Flour Milling Association booked 50kt of US milling what today. Tunisia purchased 125kt of wheat at $500.64/t. London wheat settled up.
In a first assessment of the war in Ukraine, the U.N. food agency on Friday said international food and feed prices could rise by between 8% and 20%, and that 20% to 30% of fields used for major crops in Ukraine may go unplanted or unharvested.
USDA reports soybean sales of 264kt of soybean sales to China. 129kt of old corn was also reported to an unknown destination. The tone of the long game in grains and oilseeds will be tied to old crop demand from the US, which is currently supportive in corn and beans. India in talks to buy Malaysian palm oil in exchange for wheat and rice. Brent crude was trading around $112 at time of writing. Matif rapeseed May-22 settled up €21.75 on yesterday at €904.75/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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