Written Commentary
London Wheat Report
A day of lower volumes across all London wheat contracts today, after last week’s comparatively strong few days. The morning saw prices edge into the green following Matif wheat up before the opening of the US main session seemingly forced any signs of profits to be given back. The Farmers Weekly in the UK stated that early wheat yields were ‘better than expected.’ The news purveyor of UK Ag news stated that early indications were that wheat yields were holding up well despite England facing its driest spring since 1893. This first indication of the 2025 UK wheat harvest adds to the bearish sentiment that has been seen recently.
Across the pond, there was some early bargain-buying and short covering across the Ag markets in the US as market participants looked to capitalise on super low prices post Friday’s trading session. But expectations of good crops in the United States limited rises, with an uncertain mood in markets after U.S. President Donald Trump ramped up tariff threats.
Further east, owing to supply and demand dynamics, last week saw Russian wheat export prices rise owing to the slow arrival of the new crop and low yields in the southern part of the country, while export shipments were seen to accelerate somewhat. It was reported that the price for new crop Russian wheat with 12.5% protein content for FOB delivery in August was USD229 per metric tonne at the end of last week, up USD4 from the previous week.
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