London Wheat Report
Source: FutureSource
WASDE day tomorrow.
Interesting news from the Fed with Powell saying that the door is to be left open and they may need to raise rates more than expected in response to recent strong data and is prepared to move in larger steps if the ‘totality’ of incoming information suggests tougher measures are required to control inflation. Wall Street is betting on a policy rate of 6% or even higher. Biden has announced taxing high earners to pay for Medicare. Bakhmut is hotting up as Kyiv sends in additional forces to try and crank up the meat grinder process.
Chicago wheat was trading up at time of writing having come back through 700, having sunk past that yesterday to new time lows of recent. Wheat ratings were out with Kansas showing GD/EX of 17%, 2% down and 7% lower than the rating this time last year. Poor/very poor ratings are at record highs currently, still a fair while to go though and strong rebounds can always happen. Russia is currently shipping its wheat at a record pace. In January-February, Russia exported 6.7 MMT compared to 4.3 MMT last year according to SovEcon – really cranking the volume up.
Soft wheat exports from the European Union in the 2022/23 season that started in July had reached 21.02 million tonnes by March 5, up nearly 8% from 19.52 million by the same week in 2021/22, data published by the European Commission showed today. A breakdown of the EU data showed France remained by far the biggest EU soft wheat exporter this season, with 8.39Mmt shipped, followed by Romania with 2.58Mmt, Germany with 2.47Mmt, Latvia with 1.90Mmt and Lithuania with 1.85Mmt. Aussie wheat exports were up 25% in Jan on strong demand.
Matif wheat was trading lower today with May-23 hitting trading lows of €268/t before settling down €1.25 on yesterday at €270/t. EU weekly exports were down 57% W-O-W at 117.6kt for week ending March 6th. London wheat pushed lower.
Chicago soybeans were pushing lower Matif rapeseed pushed lower with May-23 settling down €10.25 on yesterday at €519.50/t. Brent crude was pushing on the oilseed complex with Brent trading down 2.65% at time of writing.
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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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