Written Commentary
London Wheat Report
Good to see some international wheat tenders yesterday out of Algeria and Egypt, with some interesting numbers. It appears old crop is being offered at a decent discount to the Sept24 Milling wheat futures. A weak basis and some keen sellers.
Wheat markets take another step lower today, most likely helped by the aforementioned tender results but also a lack of fresh news. It appears that the Russian wheat production forecasts have stabilised for now.
Trawling on Reuters this afternoon we read that May was one of the driest in Ukraine for 30 years and in some regions for more than 100 years. The weather story has largely come out of Russia and reports we are reading Ukraine has seen crops deteriorate but largely come out unscathed, helped by no spells of higher temperatures.
The below chart looks at Matif Milling wheat Dec24 minus London wheat Nov24 in EUR/tonne, and it’s quite interesting to see how the dynamic has changed in the last month with London now trading at a reasonable discount.
Source: Reuters
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