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ADMISI London Wheat Report for 26 January

London Wheat Report

Source: FutureSource 

Turnaround Wednesday after turnaround Tuesday. Wheat took some major beating on markets, starting on the overnight session in the US and continuing across all markets throughout the day. The defence minister of Ukraine said yesterday evening that all was well and it appears that if there is to be any action on the Black Sea, then it may be delayed a couple of weeks and post Chinese Olympics is market chatter. A substantial amount of profit taking was seen in the wheat markets with funds liquidating gains. Chicago Mar-22 was trading down 22 cents at time of writing and Matif Mar-22 settled substantially down at €281.25/t, €9.50 down on last night’s settlement. Ukrainian wheat production remains unchanged due to favourable weather conditions. Algeria announced the purchase of a small volume of milling wheat.

Soybeans found substantial support today, from a rally in Brent Crude on the back of the Black Sea issues and also from updated US acreage prospects. Brent crude hit a trading high of $90.42/barrel at time of writing, levels not seen since October 2014. US soybean acreage for 2022 is projected to total 87.8M acres, down 1 million acres from the HIS Markit December projection. Brazil 2022 soybean exports have been reduced by Safras & Mercado from 90Mmts previously to 85Mmt. Rainfall continues to be a major talking point. Most trade focus on the Black Sea issues have been on the potential impact on wheat and corn, but Ukraine accounts for around 15% of world rapeseed/canola trade, and 50% of world sunoil trade so it is not inconsequential. Matif rapeseed found support after yesterday’s downward spiral, with Feb-22 settling up €8.50 on yesterday at €723.75/t.

South Korea was reported to have purchased an estimated 193kt of corn in tender, bought in three consignments. Corn started off weaker in Chicago earlier before finding support, with Chicago Mar-22 trading up 5 cents at time of writing. No evidence yet of any distortions to either the Black Sea freight market or to insurance premiums. 

Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team

Hanne Bell, Ryan Easterbrook, Dominic Enston, Aaron Stockley-Isted

Phone: +44 (0)20 7716 8477  or  +44 (0)20 7716 8140      Email: intl.grains@admisi.com

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© 2022 ADM Investor Services International Limited

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.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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