Written Commentary
London Wheat Report
Source: FutureSource
Softer tone overall in the US ag markets today as the spec buyers may be running out of steam to what appears a very top heavy market and overbought market support. Tomorrow is also May option expiry so do not rule anything out but there is a weekend feel towards the market.
US Chicago May-22 wheat is down circa $9/t currently as Russian exports continue, which does limit US export opportunities. EU markets have also followed this trend with Matif May-22 trading down €4.50/t on the May position. Russia’s Union of Grain Exporters are in ‘constant dialogue’ and are gunning the Egyptian government with alternative options to bypass tenders and conclude deals directly. Pakistan has announced the requirement to import circa 3Mmt of wheat of which 2Mmt will come from a deal with Russia and the other 1Mmt coming from public international tenders. Rains have boosted Australia winter planting but continued pressure on logistics is creating headaches. Matif May-22 settled up €7.25/t at 405.75 as new crop gets squeezed. Sept-22 settled down €4.50 on yesterday at €405.75/t.
China boosts Brazilian
soybean imports more than doubled to 2.87Mmt in March from a month earlier,
according to the nation’s customs department. This compares to 315kt bought a
year ago. Imports from the U.S. fell 9% from a month earlier to 3.37m tons,
-53% y/y. Brazilian soybean crop seen steady at 125.3Mmt, stable from previous
estimate. Brent crude was trading higher at time of writing, up 1.21% at
$108.01/ba. Matif rapeseed May-22 continues to get squeezed, settling up €20.25
on yesterday at €1064.50/t. Aug-22 rapeseed settled down €0.25 on yesterday at
€855.25/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.
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