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ADMISI London Wheat Report for 28 February

London Wheat Report

LWR-chart-2023-02-28

Source: FutureSource 

Russian forces have continued to tighten the noose on Ukraine’s Bakhmut and Vladdy has been giving a lecture to the FSB about the requirement to tighten security around key infrastructure sites and the Ukrainian areas under Russian control, appearing after drone attacks in two regions apparently and after the Russian spy plane was also hit. Russian general, second in command has had a strip tease video of him released by Russian media. Downing Street has said that the Windsor agreement is the deal and both sides are now on parity – no movement will be tolerated. GBP strengthened again today.

Wheat markets remained under pressure again today. Chicago wheat was trading sideways today, close to yesterday’s 17 month lows as rain in the US wheat belt and continued Black Sea exports at rapid pace dampens the market. For the month of Feb, wheat has lost more than 7%, falling for the fifth month in a row with May-23 Chicago trading around the 709 mark. Matif wheat was under further pressure today and this also rolled across to London. Decent volumes seen traded on London wheat May-23 today, a 49 lot clip was even seen traded today – oh behave! Some true London big boys out there.

Turkey purchased an estimated 790kt of wheat in an international tender today and tender is now over with no additional purchases anticipated. Traders reported plenty of Black Sea wheat leading the charge with Ukrainian and Russian being predominant. All wheat purchased was 12% protein. New US and EU sanctions on Russian banks could slow grain export pace ……. This is more an American view than realistic reality – just have a look how busy trade finance in Dubai is at the moment underwriting Russian exports business, pedal to the metal over there currently and nowhere near the burdensome regs that we have over here. Japan have hit the market again for 70kt of American wheat.

Chicago soybeans got slammed again today as market chatter regarding an increased Brazilian harvest of record 2023 crop will help offset lower Argentine supply. Brazil’s soybean harvest has reached 34% according to CONAB. China soybean crush margins have also turned which is bearish for the crop as exports could well slow now. Some of the market now think that wheat and corn is going into the oversold level and a correction is imminent. Matif rapeseed followed US markets down. Brent crude strengthened.

Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team

Hanne Bell, Ryan Easterbrook, Dominic Enston and 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.

© 2023 ADM Investor Services International Limited3

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.

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