London Wheat Report

Source: FutureSource
Ag markets were mixed in today’s trade, starting lower before finding support in the latter half of the day. Strategie Grains raises EU wheat export outlook on Ukraine conflict. An anticipated 11Mmt of wheat will go missing from the world market in the 2021/22 season due to the Russia/Ukraine conflict according to the consultancy. In its monthly report Strategie Grains cut its projection for what exports out of Ukraine by almost 6Mmt and Russia by 5Mmt. Consequently, wheat export shipments were lifted by 2Mmt to 32.5Mmt. Turkey has been offered 270kt in latest milling wheat tender with a believed price of $450/t c&f traders said in initial assessments. IGC cut its forecast for Ukrainian grain exports in the current 2021/22 season noting the ongoing conflict. Ukraine’s grain exports were revised to 47.8 million tonnes, sharply down from last month’s forecast of 62.8 million with the council noting projections were especially tentative and subject to significant uncertainty. Ukraine’s corn export outlook was cut to 21.0 million tonnes from 31.9 million while wheat exports were downwardly revised to 20.8 million from 24.5 million. The IGC also downwardly revised its forecast for Russian grain exports to 37.1 million tonnes from 37.7 million. “While loadings (in Russia) recently resumed, volumes may be hampered by trade finance restrictions and additional ocean freight insurance requirements,” the IGC said. Germany’s 2022 wheat crop will increase 5.8% on the year to 22.61Mmt according to Reuters. Matif May-22 settled up €4.25 on yesterday at €367.75/t. Corn and beans rose, supported by a rally in crude oil
fuelled by concerns about the impact of the war on Russian oil exports. Brent
crude was trading up 8.5% at $106.45/ba at time of writing. May-22 soybeans
were trading up 19 cents at time of writing and Matif Rapeseed May-22
settling a whopping €29 on yesterday at €928.50/t, the remainder of Matif
rapeseed settled lower. Brazil is set for more rain as conditions ease in
parts of Argentina. US corn net sales for the 2021/22 crop year fell 14% to
of 1,836,400 mt in the week ending March 10 but were up 64% from the prior
4-week average, data from the USDA showed. |
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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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