Written Commentary
London Wheat Report
Corn and Soybeans were well supported in the states today with news that torrential rainfall in Brazil’s second-largest soybean and sixth-largest corn state is disrupting the final stages of the harvest. The heavy rains, which will continue through the weekend, with a respite between Sunday and Monday, have brought flooding to some grain and urban areas, blocking roads and destroying infrastructure. Just what damage to the crops will be closely monitored.
Ukrainian exports of agricultural commodities wheat and corn are likely to fall by nearly a quarter in the upcoming 2024/25 July-June season following a smaller harvest as a result of war, the first deputy agriculture minister told Reuters on Thursday. Disclosing for the first time, the official forecast for 2024/25, Taras Vysotskiy said the export of wheat could fall to 14 million metric tons from 18 million tons in 2023/24.
Weather has supported wheat of late and forecasts did show that rain was on the way for Russia and the US cop zones, which drove the markets down in recent days. Today wheat was supported as many believed the forecasted rain wasn’t enough to alleviate the dryness. Chicago Jul did trade up 16 cents in the preopen and but was back to trading in the red at the time of writing (down 2 cents) Matif wheat was trading in the green all day until the last hour where it did its best to go red but ended pretty much unchanged.
London took some time to get going this morning, and even with Matif returning after ones days holiday, didn’t trade until late morning. Like its big brother from the block, it was trading in the green. Nov 24 opened up £2. May 4 open interest continues to get chipped away. A small amount was traded on screen on screen and 30 lots were tendered today.
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