Written Commentary
London Wheat Report
Temperatures fell as low as -14C (6.8F) making it the coldest night of winter, as new amber warnings are issued for heavy snow showers in Scotland later. Expectations that interest rates will be cut this year remain despite a surprise uptick in the UK’s inflation rate last month. Inflation, rose marginally to 4% in December, up from 3.9% in November.
Soybeans have been in the news of late and today EarthDaily Agro, a division of Canada-based EarthDaily Analytics, said data suggests Brazilian soybean farmers in top Brazilian grain grower Mato Grosso state are looking at the lowest yield trend of the past 15 years. Both software and satellite data firm projects Mato Grosso soybean yields at an average 52.12 bags per hectare in the ongoing season, more than 10 bags lower compared with the last one.
US Chicago wheat had a 20 cent range today starting the day down but having a turnaround in the afternoon to be up 10 cents at the time of writing. Soybeans, however, took a tumble today and were trading down 16 cents at the time of writing. Mixed news of late coming from South America has given the market plenty to think about. Corn had a mixed day, starting down before finding support later in the day.
FranceAgriMer has taken some volume from its forecast of French soft wheat exports outside the EU to 10.1 million metric tons from 10.2 million projected last month, now 0.5% below last season’s level.
Ukraine grain exports stand at 2.5M tonnes so far this month their agricultural ministry announced today.
European wheat markets couldn’t seem to make their minds up earlier on in today’s session. Both London and Matif were up, down and sideways. Later on in the day, markets found support and closed in the green. Like wheat, Matif rape was similar, finding support in the later stages and closing up. London volume was ok, May4, Nov4 and May5 all finished in treble figures. May4/Nov4 spread stands around the £14 mark. May25 saw some trading yesterday and again today, 175 lots going through.
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