Written Commentary
London Wheat Report
Another comparatively strong day for volume on London wheat today, with nearly 1500 lots trading through all contracts. Similar to yesterday, prices were highly volatile, with prices on both May-25 and Nov-25 London contracts bouncing £3 between the highs and lows. All London contracts ended the day slightly down, avoiding the much larger slide in prices seen on the Paris wheat contracts, which saw all near-dated contracts coming off EUR 4.00 or more. This comes off the back of retaliatory EU tariffs on the US, which will reportedly be imposed from April 15th.
The EU counter-tariffs on US goods starting next week are set to limit a large flow of US corn to Europe and raise costs for buyers chasing alternative supplies of the feed grain. US soybeans, which the EU imports in much bigger volumes than corn, will be subject to tariffs from December 1st. The retaliatory measures, approved by the bloc’s members today, will price US corn out of European markets where buyers have scooped up abundant and cheap U.S. supplies this past season.
Oil prices also fell away today, trading down to a 4-year low; the Brent front month low was USD 58.40 today. This means oil has lost around 1/5 of its value since Trump announced higher tariffs on the US’s trading partners, resulting in the biggest daily drops since March 2022.
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