Written Commentary
London Wheat Report
Source: FutureSource
Lots of go in the ag markets today with wheat seeing the highest gains. Very much headline inducing today with the primary headlines of the Donetsk and Luhansk regions holding referendums over 23 – 27th Sept on whether they wish to legally become part of the Russian Federation. This then begs the rhetoric what the reaction from the Kremlin will be. With the substantial gains by the Ukrainian army in Eastern Ukraine, it is evident that the Kremlin has had to slightly change tact. We shall have to wait and see what happens but it offered significant support to the markets. Chicago wheat Dec-22 was trading up 47 cents at time of writing with Matif Dec-22 wheat hitting trading highs of €339/t before settling up €13.50 on yesterday at €339.25/t. Russian wheat harvest continues at pace with a reported 91% harvested and overall bunker weight hitting nearly 100Mmt. More than 3.5 million tons of grain and foodstuffs have been shipped from Ukraine’s Black Sea ports under an export corridor that opened in early August, according to the latest line-up posted by the United Nations. Chatter about US old crop supplies for corn has offered support with CZ continuing the uptrend. Ukraine’s 2022 corn harvest is now estimated at 27m tons, up 0.5m tons from a prior outlook, analyst UkrAgroConsult says in an emailed report. US corn and soybean conditions dropped by one percentage point from the prior week while the harvest of both crops advanced in the week to September 18, according to the USDA. Corn harvest 7% vs 5% last week, and 9% a year ago. Soybeans harvested 3% vs 5% a year ago. China’s soybean imports from Brazil fell 31% in August from a year earlier, according to customs data Tuesday. Shipments from the country’s top soybean supplier came in at 6.25Mmt. EU corn yield is cut even lower again with the latest stats from MARS to be seen below, in t/ha:
Source: Monitoring Agricultural ResourceS (MARS) |
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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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