Written Commentary
London Wheat Report
After a heavy day in the red yesterday, it looks as though there has been some degree of turn around with the front month in London Wheat closing 191.30 and Matif Wheat 214.25 given strong buy levels across the board.
Contrary to yesterday’s IKAR estimates (increasing wheat outputs from 83mnt to 83.2mnt), the Rostov region which accounts for 11% of Russia’s total grain harvest, is battling to save its harvest. Given Russia’s position as top global wheat exporter, this could yet throw grain markets into disarray once again. To confuse prices yet further, progress on the winter wheat harvest in the US is better than average (74% harvested so far this year compared to 62% over a 5-year average for the same date). This may go some way to negate Russia’s woes.
Matif Rapeseed is perhaps the most notable gain in today’s trading, posting its first day in the green since the 5th of July. It has shed north of 41 Euros/T over this time. It only gained a Euro across the curve today so still plenty of value to recover although it does raise the question: could this be the hallowed turn-around-Tuesday we have been waiting for?
Source: Refinitive
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