Written Commentary
London Wheat Report
Source: FutureSource
Chicago corn and soybeans leading the charge today as hot and dry conditions continue in arts of the US Midwest. Wheat was largely a follower, but also supported in today’s trade by strong international demand whilst concerns continue about the pace of Ukrainian exports if / when they resume via the Black Sea.
Yesterday, Sovecon Agri consultancy raised their forecast for Russian wheat production in the 2022/23 marketing year to 90.9 MMT, and increased their wheat export forecast to a staggering 42.9 MMT. Far surpassing the USDA 40MMT of exports that some though far too optimistic.
Indian wheat prices have climbed to an all-time record high despite them banning exports. Speculation grows that official crop numbers are way too high and the USDA’s 6MMT of exports is unrealistic.
Egypt has apparently cancelled contracts for a total of 240,000 tonnes of Ukrainian wheat that were booked by GASC for February and March delivery but never loaded due to Russia’s invasion of Ukraine.
London wheat trades decent volumes today (881 lots across the curve), after posting reasonable gains soon after the Chicago markets opened for the main session, things calmed down into the close settling marginally higher on the day.
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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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