Written Commentary
Prices turn softer today with hopes for dry weather in Brazil, rain in Argentina and more rain in the US boosting crop and harvest prospects.
Brazil soybean export pace is moving at record pace now that harvest is ramping up. However a large backlog remains as a result of the wet weather delays with 25mmt waiting to be loaded (the largest since 2016) and further demand likely. Estimates for Chinese demand suggest around 6 cargoes of beans a day needs to be bought, which is way ahead of the current 1-2 cargo pace of late.
Following years of drought, reports of torrential rain falling in parts of south and eastern Australia causing extreme flooding, washing away livestock and potentially damaging crops. No details or numbers yet but could be one to watch.
London wheat lower today despite the continually weakening GBP. In Europe fears of “Covid 3.0” are dampening hopes of global economic recovery which is weighing on crude oil prices and could mean lower demand for grain too.
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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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