Written Commentary
Prices remain well supported to start the week. Rain continues to hamper Brazilian soybean harvest and corn planting, whilst showers are too light in Argentina. Both corn and bean supply looks tight for next season. Trade still waiting to assess the full impact of the deep freeze in the US but talk that China has bought two US wheat cargoes, one Canadian and one Australian since returning from the new year holiday was supportive. Australian wheat continues to be the cheapest wheat into Asia despite the reason price rises. Soaring freight rates making all physical wheat look expensive right now, especially in the Baltics. Rumours that China may have also bought a French wheat cargo could explain the higher old crop Matif level. Fact US wheat carryout for next season is forecast at the tightest level in eight years due to higher feed demand is also supportive.
Another day of thin volume on the London wheat market today, which reportedly matches the physical markets. The AHDB report milling wheat premiums coming under pressure from lack of old crop demand as foreign wheat imports continue to fill the pipelines for now.
Sterling up to the highest levels vs the USD since spring 2018.
UK government due to outline plans for the easing of lockdown measures this evening at 7pm.
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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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