Written Commentary
London Wheat Report
A day of red for London wheat as all contracts ended the day down, also echoing Matif’s market direction. Volumes through the London Nov-25 contract were slim, with just over 200 lots trading throughout today’s session.
It was reported today by the DBV German Farmers’ association that the country’s 2025 grain harvest will rise to about 40.1 mmt from 39 mmt last year. This comes after a long spring drought made for dryness stress in some German regions with light soils unable to store water. However, it was reported that grains in other regions with heavier soils fared better. This led the farmers’ association to suggest that there will be big regional variations in yields across the country. As it stands currently, Germany is the European Union’s second-largest wheat producer behind France and is often the EU’s largest producer of rapeseed.
The EU and Ukraine have today reached an initial deal to revise their free trade agreement and determine future agricultural exports from Ukraine to the bloc. In an EU Commission news report, the bloc stated that it has returned to its pre-war trade agreement with Ukraine, with tariffs and quotas limiting some agricultural trade. The revision agreed on Monday will fully open the EU market to less sensitive products. For sensitive products, such as sugar, poultry, eggs, wheat, maize and honey, EU quota increases would be limited. A final agreement will need to be approved by EU members.
Finally, in the USDA grains stocks and acres report released today, corn stocks were reported at 4,643 mil bu vs 4,641 expected and 4,997 seen last year. Wheat stocks at 850 mil bu vs 836 expected and 696 seen last year. Soybean stocks at 1,007 mil bu vs 980 expected and 970 seen last year. With regard to planted areas, corn planted areas were slightly down on expected, wheat was exactly as expected, and soybeans were also slightly down on expected.
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