Written Commentary
London Wheat Report
Source: FutureSource
London wheat and Matif milling wheat find support whilst US grains were mixed and market direction less defined. Minneapolis wheat was the winner in the US grains complex, new contract highs for the fourth session in a row, with ongoing dryness in the plains and expectations of further cuts to the Canadian crop.
The vegoil complex was firmer across the board, with Chicago soybeans, Canola and rapeseed all well supported in today’s trade. Helped by a strong advance in palm oil and further strength in the energy markets. Fears that very high crush margins will spark a sharp advance in soybean meal production helped to push meal lower after an early rally today to the highest level since September 30.
London wheat had a relatively quiet day from a traded volumes perspective. Of the 520 lots of Nov21 open Interest, 376 lots of this went to tender today. With 477 lots worth of wheat registered in the futures stores, this leaves 101 lots currently unaccounted for. Will these go to tender or be rolled into May21 with the spread still trading at -11.
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Phone: +44 (0)20 7716 8477 or +44 (0)20 7716 8140 Email: intl.grains@admisi.com
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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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