Written Commentary
London Wheat Report
Source: FutureSource
Wheat extends run to 1-month high with Ukraine-Russia focus and threat of military action adding some fire to US and European markets. Nothing really new to be seem but the same rhetoric remained heated. A written reply simply which cannot acquiesce to the NATO membership issues. The ball will then be in Putin’s court. Russian heavy armour continues to be moved around at a pace not seen since October and drills continued to be relayed to the Western news agencies. US continues to try quell panic with statements of intent to bolster troop numbers and to re-direct gas supplies should the Kremlin shut off the tap. Poland is getting irked with Germany who still refuse to become involved/supply military equipment to Ukraine and the Nato mission. A pacifist outlook to Russia can be seen in the Bundestag in comparison to other nations in Europe. Speculation continues that any escalation in Black Sea issues may benefit French wheat to re-enter North African markets previously lost to Russian wheat. Drought continues to batter North Africa which could see grain imports rise sharply this season as drought threatens cereal crops in several countries. Matif Mar-22 settled up €8.25 on yesterday at €290.75/t. London also found some substantial support.
Soybeans ticked higher to remain near last week’s seven-month peak as traders weighed mixed crop prospects in South America and signs of healthy demand in the US. Brazil’s Mato Grosso reports good early bean yields while southern production areas remain disappointing. Dr Cordonnier leaves Brazilian bean numbers unchanged, 134Mmt. Volatility continues in Rapeseed with Feb-22 settling down €4.25 on yesterday while May-22 settled up €5.45 on yesterday at €672.75/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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