Written Commentary
London Wheat Report
A surprise fall in inflation in November has raised hopes that the Bank of England will begin cutting interest rates sooner than expected. Inflation – the rate prices rise at – fell from 4.6% to 3.9% last month, the lowest for more than two years. A court has ruled that Donald Trump cannot run for president in Colorado because of his actions ahead of the January 6 riot. Phil Salt’s second successive century helped England hit their highest T20 international total in a chaotic 75-run win over West Indies to level the series.
The US has long been China’s biggest Corn supply, until now. Brazil has overtaken the US in supplying more corn this year, as well as Soybeans. Brazil’s pole position comes just a year after China approved corn exports from the South American nation to diversify its suppliers and reduce its dependence on the United States and Ukraine. Brazil supplied 3.22 million metric of corn tons out of the record high total of 3.59 million tons that arrived in China in November.
French crop woes rear their head again as the area sown in France looks to be the lowest since the year 2000 @ 4.24M hectares. Heavy rains are to blame. The estimate is down by 530,000 hectares or 11% from the current marketing year’s crop and includes an estimated 54,500 hectares of late planting that farmers are set to sow in the coming days.
Algerian state agency ONAB is believed to have bought about 80,000 metric tons of animal feed corn to be sourced from Argentina in an international tender this week.
CBOT markets were mostly off at the time of writing. Corn down 2 cents, as were beans. Chicago and Kansas wheat were down nearly double digits. Matif wheat was slightly off and rape gave back some of its losses from the week to close up. London found some support today. May and Nov both closed up over a pound. Volume was around the 150 lots which two days before the Christmas break is probably on the good side. May/Nov spread traded today for 7 lots @ £ 12.55.
Two more working days to go!
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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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