Written Commentary
London Wheat Report
US CFTC showed Money managers were net sellers of nearly 30,000 contracts in the ag. space last week extending their short position to -478,380 contracts. MM’s were net sellers in corn for the 8th consecutive week, selling another 26,391 contracts extending their short position to a record large 340,732 contracts. This is the largest in history. MM’s have been net sellers in the soybean complex for a record of 13 consecutive weeks selling nearly 23,000 contracts last week extending their combined short position to 220,202 contracts, the largest since May-2019.
Farmers set fire to piles of tyres in Brussels on Monday in a protest to demand action on cheap supermarket prices and free trade deals, as agricultural ministers from across the EU met to discuss the crisis in the sector.
Cross-border tension in Eastern Europe continues to grow between adjacent countries to Ukraine. Yesterday 160 tonnes of Ukrainian grain was sabotaged at a Polish train station. Cross-border tensions over agricultural exports have been an ongoing issue for countries that are close to Ukraine as many believe the amount of export coming from Ukraine is lowering prices for domestic farmers. Kyiv has urged Poland to punish those responsible. Deputy Prime Minister Oleksandr Kubrakov said on Monday, “Those who have damaged Ukrainian grain must be found, neutralized, and punished.’’
Very mixed day for trading on Global ags today. The morning looked like the bearish tones were back. In the US, corn and wheat were off in the overnight. After the main session opened there was a complete turn around and both corn and wheat found support. Leading up to the European close both corn and Wheat were pretty much unchanged. Beans were also yo-yo-ing around all day, they started off green, before turning red in the afternoon.
European markets were similar to the US, up down and sideways. Rapeseed was following its big brother Beans across the pond in trading positively in the AM, negatively in the PM. Matif wheat after having a brief spell in the green turned to close negatively.
Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team
Ryan Easterbrook or Aaron Stockley-Isted
Phone: +44 (0)20 7716 8477 or +44 (0)20 7716 8140 Email: intl.grains@admisi.com
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.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
