Written Commentary
London Wheat Report
Another steamy start on our wheat markets – Chicago wheat trading on the day’s highs (up 19 cents) when the London wheat / Matif markets opened London wheat Nov24 briefly touches 225 and Milling wheat Dec24 spikes to 268.75 soon after the open. Milling wheat managed to hold on to some of the day’s gains whereas both London and Chicago soften, ending slightly lower.
Concerns continue about deteriorating harvest prospects in top exporter Russia. Southern Russia, eastern Ukraine and western Kazakhstan are expected to remain in a dryer than normal pattern into early June.
While wheat prices were sold off sharply as the day continued, soybeans and soybean oil are leading the higher trade.
Agroconsult said on Wednesday that Brazil’s 2023/24 second corn crop, which is planted after soybeans are harvested in the same areas, is expected to reach 96.7 mmt, down 10.5% from the previous season. Largely due to adverse weather conditions in Brazil’s Parana and Mato Grosso do Sul states.
London wheat Nov24 seen below. It has been one hell of a ride of late.
The London Nov24 / May25 spread trades up at -6 which is quite a surprise. With futures stores at 5p per tonne per day and the BOE’s base rate at 5.25%,, you expect this to be closer to -15.
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