Written Commentary
London Wheat Report
Source: FutureSource
Ags sell- off continues with wheat leading the charge as financial and growers pressurised prices. Technicals are at the forefront of this with key support levels being breached which has accelerated downside in recent days. Outside markets are trading nominally lower ahead of Fed comments from this week’s FOMC meeting. Wheat continued to trade lower throughout the day today with technical oversold but continuing to point lower, Chicago Mar-22 was trading down 32 cents at time of writing. Fundamentals are still viewed as bullish. Russia announced today that the wheat export quota could be reduced. Bumper Australian crop continues to increase in size with production pinned at 33.1Mmt, up 4% from the last update according to Reuters. Wheat yield is estimated to reach an all-time high. Forecast moving forward is favourable across Aus leaving a strong sentiment to end the harvest season with. Reports suggest that Algeria booked 700kt of Argentine, Swedish, Ukrainian and Balkan wheat at $373-$376/t. No Russian or French reported. Matif wheat May-22 followed Chicago, falling substantially to settle down €8.25 on yesterday at €273.50/t. London followed suit with May-22 settling down £5.50 on yesterday at £222/t.
Crude palm oil futures traded lower today. South American weather viewpoint still mixed . Central Brazil conditions remain near ideal for beans, albeit a little more sun. EU weekly soybean imports double to 445kt, taking total so far for this season to 5.76Mmt. Brazil to export 2.8Mmt of soybeans in December. Matif rapeseed May-22 settled down €6.25 on yesterday at €652.25/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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