ADMISI London Wheat Report for 01 February

Turnaround Tuesday hits us again on the markets today, the bulls are definitely on the run. Chicago soybeans absolutely took off in the later part of this afternoon, Chicago Mar-22 was trading up 42 cents at time of writing and broke the $15 barrier this morning, as if the managed money traders walked into their offices at 7am Chicago time this morning and put the hammer down on the buy button. This morning, one order to buy 1200 lots seriously put some fire into the market.  A substantial driver of the soybean market has been the rally in Brazilian FOB basis, which has rallied 70 cents for March, and 65 cents for April. Combined with the decent drop in ocean freight, it has really narrowed up the advantage that Brazilian exporters had over US beans. Meal is being pulled up as Northern Argentina is lending some support and a weaker bean oil market on a softer crude overnight. Soybeans appear to remain incredibly overbought and it doesn’t take much to break an overbought market in a hurry. Matif rapeseed also found support with May-22 settling up €5.50 on yesterday at €721.25/t.

US and EU wheat markets were licking their wounds after yesterday’s losses. Chicago wheat has really been at the mercy of the Matif contract and yesterday’s move could be perceived as slightly too sharp.  Cold snap forecast for the remainder of the week in the Northern Plains and Canada could throw another wrench into logistics. Jordon is said to have 3 participants in their 120kt wheat tender. Tunisia is also reported to have bought 75kt of durum wheat and 100kt of soft wheat. Japan has also launched a tender to buy 54kt of milling wheat from Aus and Canada. Fears continue to ease in the Black Sea with Russian wheat prices under pressure. London wheat settled up on last night.