Written Commentary
London Wheat Report
And just like that we’re into the second half of 2024. It will be a short week in the US with CBOT closed on Thursday for Independence Day, and likely a quieter day on our European markets as a result.
Wheat markets on the move higher today, recovering from Friday’s losses and some, with Matif milling wheat seemingly leading the charge. London took a fairly long time to follow suit and the last traded price is not really reflective of the day’s trade. Nov24 trades from 197.50 to 201.75 in the final minute (the settlement window).
Strategie Grains have cut their forecasts for all the main oilseed crops in the EU. Rapeseed production is seen at 17.80 mmt, down for 17.95 in June and 10.6% down on last year. Sunseed is down to 10.49mmt from 10.72 in June. Soybean production is down to 2.99mmt from 3.06 in June, but still 3% higher than last year.
In Friday’s COT we saw money managers were net sellers of just over 169,000 contracts across Ags, extending their short position to 523,472 contracts their largest short position in the Ags space since May-2019.
Hot/dry conditions are expected to build over much of Eastern Europe including Ukraine and Southern Russia through mid-month which may cause yield threatening crop stress. Scattered showers will continue to bring some relief to the North China Plain this week.
Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team
Ryan Easterbrook, Aaron Stockley-Isted and Jamie Kirkwood
Phone: +44 (0)20 7716 8477 or +44 (0)20 7716 8140 Email: intl.grains@admisi.com
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.
