Written Commentary
London Wheat Report
Another wild day on the markets, more so the financials that ags with the S&P500 trading in a 7% range within 30 mins. After opening lower there were rumours that Trump to put a 90 day pause on tariffs, only to sell off moments later when this was found to be false.
Wheat was leading the charge as weather in the US and pending crop conditions are giving life to the wheat complex. Reports that yesterday there was a hard freeze that occurred this U.S. hard red winter wheat production areas. The cold burned new vegetative growth after recent bouts of unusually warm temperatures, although the impact is likely limited as the crops aren’t that far along.
China will begin charging a 34% tariff on all US imports this Thursday, April 10th. Details of their response against the new US trade policies are still being deliberated. Trump has today threatened a new 50% tariffs on China if Beijing doesn’t remove retaliatory duties.
Not a bad day on London wheat volumes with May26 also seeing a decent chunk of the trade. The May/Nov spread was under pressure again, trading down to -20.
The April WASDE is out on Thursday the 10th.
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.
