Written Commentary
London Wheat Report
Grains prices were red across the board following crude oil lower on a report that Iran would restore traffic through the Strait of Hormuz within a month as part of a framework deal with the U.S. though subsequent rhetoric suggests this still remains some way off. NYMEX crude fell 4.3% $89.8/bbl.
Forecast precipitation for the Great Plains is improving and whilst there are still some higher temperatures in the 8-14 day forecast, there is little fresh news to feed the bulls as we get closer to harvest. Corn and soybean planting continues to advance well as we await the first crop condition report of the season which we should see next week. ANEC report Brazil’s soybean exports at 15.9 mmts for May down 200kmt from the previous week.
Sovecon raised its forecast for Russia’s 2026 wheat crop to 90.3 mmts from 89.7 mmts, citing favourable “moisture reserves”. This places their first estimate for total Russian grain and pulse production for 2026 at 137.4 mmts, down from 141.2 mmts a year earlier. Ukraine’s Deputy Economy Minister Taras Vysotskiy reported that Ukrainian farmers used less fertiliser in the 2026 spring sowing period due to the conflict in the Gulf, potentially negatively affecting crop yields.
South Korea purchased 130,000 mmts of feed corn in two private deals without issuing an international tender.
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.
