Written Commentary
London Wheat Report
A volcano has erupted on the Reykjanes peninsula of southwest Iceland after weeks of intense earthquake activity. At least 126 people have been killed in north-west China in the country’s deadliest earthquake for years. The health ministry in Gaza, which is run by Hamas, says more than 19,660 people have been killed and 52,500 injured in the enclave since the start of the Gaza war.
Recent attacks in the Red Sea by Houthi rebels from Yemen is risking price surges in Oil and other commodities. After yesterday’s announcement by BP, The world’s second largest shipping line, Maersk, said on Tuesday that it would reroute some of its vessels around Africa’s Cape of Good Hope. The disruption has led the US to launch an international naval operation to protect ships in the Red Sea route. Countries joining the security action – named Operation Prosperity Guardian – include the UK, Canada, France, Bahrain, Norway and Spain. A number of container ships are anchored in the Red Sea and others have turned off tracking systems as traders adjust routes and prices in response to maritime attacks.
Ukraine Deputy Prime Minister Oleksandr Kubrakov on Tuesday said that 10 million metric tons of products have been exported to 24 countries through its alternative Black Sea corridor. “From the beginning of the operation we increased the turnover of products from 278K tons in the first month to almost 5 million tons,” Kubrakov said on X social media platform.
News late last night drove Soybean prices to finish positively yesterday. Argentina’s government on Monday said it would seek to raise the export tax applied to soybean oil and meal to 33% from a current level of 31%. Bioeconomy secretary Fernando Vilella said in a video on social media that the measure would be proposed in a bill sent to the country’s congress. There were some murmurings last week regarding this but nothing seemed to be officially announced until yesterday. Soybeans looked to give back their gains from yesterday in today’s session, down 18 cents at the time of writing.
Mixed markets on CBOT today with the wheats up and the soy complex and corn down. Matif wheat was off in the near months and positive in the far. Rape came off in today’s trading.
London was on the quiet side, as we gear up to the big day… Lots of out-of-office replies when we send the report out. 100 lots traded across the curve. May 24 traded between £193.10 and 194.70, Nov24 between £206.50 and 207. May closed slightly up and Nov was as good as flat. 20 lots Bid and offer on Jan24 @ 183 and 186 respectively but was untraded all day. May/ Nov spread traded today at around the £12.30 mark for 13 lots.
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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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