Written Commentary
London Wheat Report
Source: FutureSource
Another manic day on the markets to round the week off. Chicago wheat values are on pace for the best weekly gains since 1959, with Chicago wheat gaining a whopping 40% since when the Russian troops entered Ukraine last week. Overnight Chicago wheat heat the upper limit again as the story that Russian troops had taken over Europe’s largest nuclear power plant and thrown in a couple of missiles onto the administrative buildings for good measure. No long term damage and power plant is running but a bit close to the bone for sure. Outside buy money flow presses the buy button while trapped shorts scramble to come up with margin money.
An absolute roller coaster on the wheat markets today, serious volatility and a substantial amount of profit taking to end the week as traders square positions just in case Mr Putin throws another curve ball. London wheat hit a high which was more than £50/t above last week’s closing prices, setting a new record high for the market. London wheat May-22 hit a trading high of £300/t and a trading low of £275/t. March-22 had some offers in today at £290/t and £295/t although nothing traded on the market.
Matif wheat had an absolute corker with May-22 hitting a trading high of €406.75/t before hitting a trading low of €350.25/t and settling up €5.50 on yesterday at €371.75/t. Mar-22 hit a trading high of €426/t. Europe is trying to keep wheat out of the export channels currently while the saga continues. An estimated 93% of French soft wheat crops were in good/excellent condition according to FranceAgriMer, above a year-ago rating of 88%. Iraq’s trade ministry has requested funds to cover the importation of two millions tonnes of wheat to provide a strategic reserve, trade ministry spokesman Mohamed Hanoun said in remarks carried by state media.
USDA booked 106kt of soybeans to China, 108,860t to Mexico and 125kt to an unknown. EU is facing a shortfall in sunflower oil as war blocks exports from key supplier Ukraine, vegetable oil industry group FEDIOL said on Friday. EU refineries source 35%-45% of their sunflower oil from Ukraine and available stocks in the EU are estimated to cover four to six weeks it said in a statement. Matif rapeseed May-22 settled up €11 on yesterday at €820.75/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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