Written Commentary
London Wheat Report
Source: FutureSource
Well low and behold the Black Sea corridor was rolled over for a couple of months after all the mutterings and usual tennis play of words. Following the announcement, it’s a Tsunami of red across the ag markets, both in the US and Europe with grains and oil complex all dropping lower. How low will we go?
US weather forecast and current outlook is pretty good with nothing drastic apparent over the horizon. Increased precip for the southern plains is forecast. US weekly net sales reductions totalled 42.1kt in the week ending May-23, crop year low. – Crop scouts on the second day of an annual three-day tour of Kansas projected an average yield for hard red winter wheat in the southwestern portion of the state at 27.5 bushels per acre, the worst since at least 2003 and down from 37 bushels per acre last year. This still wasn’t going to turn the tide against the bearish armada. Chicago pushed lower as did Matif. Matif wheat Dec-23 dropped below the €230/t levels, trading around €228/t for most of the afternoon. London Wheat Nov-23 also fell lower, falling through the £190/t level hitting a trading low of £186.50/t. Volumes on London weren’t bad today while Matif wheat volumes were pretty low.
Chicago corn futures slid to the weakest level in 18 months on Thursday as favourable weather boosted crops in the U.S. Midwest and heightened expectations for a bumper harvest this year while soybean prices slumped to a 10-month low. Corn and beans remain in the oversold territory. Chinese demand still remains subdued. The Brazilian Association of Vegetable Oil Industries Above raised its projection for Brazil’s 2022/23 soybean output to a record 155 million mt, up 1.4Mmt gain from the prior report and 19.2% higher than the prior year. Matif rapeseed Aug-23 settled up €7.00 today at €403.50/t.
Looking forward to seeing those of you attending the London Corn Börse tomorrow for a few cheeky ones, weather is promising to be top notch here in London!
Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team
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Phone: +44 (0)20 7716 8477 or +44 (0)20 7716 8140 Email: intl.grains@admisi.com
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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.
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