Written Commentary
London Wheat Report
Source: FutureSource
Nordstream pipelines and Trussenomics dominated macro headlines today. Kremlin outrightly denies anything to do with the explosions on both pipelines and has requested further information from Denmark in regards to the damage and route causes (lol). Was it a warning to show what they can do if they so wish … follows the opening of the Danish Polish pipeline as a country, there is also the UK – Norway pipeline. Then there’s all the comms to play with. Just a thought. BOE started a mini QE programme today buying bonds and delaying gilt sales to try and stem the fall in GBP. said it would buy up to £5bn ($5.31 billion) a day of British government bonds of at least 20 years’ maturity starting on Wednesday and running until Oct. 14 according to Reuters. IMF has been criticising harshly along with rating agencies, don’t think the Eurozone public finances look much better, let’s be honest. US and EU banks may well follow and if this is the case, inflation trade will very much follow.
Wheat continues push higher which is surprising. Chicago pushed higher in the main session, Dec-22 hitting highs of 905 and trading around circa 898 at time of writing. Still staying priced out of export competition. Russian Black Sea exports stable at 700kt, total so far this season creeping over 8.5Mmt. Algeria’s OAIC has tendered for 50kt of optional origin milling wheat. Ukraine winter wheat sowing is 16% complete. Ukraine is still jittering over the continuation of the export corridor. Taliban have signed a wheat deal with Moscow to supply Afghanistan with 2Mmt of wheat per annum with a two year trial agreement. Matif Dec-22 settled up €5.00 on yesterday at €353.75/t.
Chicago corn wasn’t moving anywhere fast with a 3 week low of 661.5 at time of writing overnight. Corn harvest is cracking on now there are barge draft and tow restrictions on the Mississippi River which is always helpful to export flows. Soybean harvest is also cracking on with minimal farmer selling pressure to previous anticipations. South Korea bought a total of 3 cargos of corn between two tenders yesterday. U.S. Agriculture Secretary Tom Vilsack has joined the protest party against the upcoming GM corn ban for Mexico. Matif Rapeseed Nov-22 settled up €5.00 on yesterday at €607.25/t.
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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.
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