ADMISI London Wheat Report for 02 December

London Wheat Report

Futuresource chart - London Wheat Report

Wheat starts lower but turns positive as the afternoon progressed. Matif milling wheat was leading the charge higher, March25 settling up 1.00 on the day. It’s not really clear what caused the turnaround this afternoon with mainly bearish news on the wires since the Russian export quota notification on Friday.

On Friday, the Eurasian Economic Union Council said Russia’s export quotas for the second part of the export season from Feb. 15 to June 30, 2025, will be 11mmt, down from 29 million in the same period this year. The EEU comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia and coordinates the customs and tariff policy of its members. In a separate announcement, Russia’s agriculture ministry hiked the wheat-export duty by over 18% from Dec. 4. This didn’t add much fuel to the wheat markets amid the current landscape of cheap Black Sea and Argentine offers to the market.

ABARES raised Australia’s 2024/25 wheat harvest estimate by 100,000 metric tons to 31.9 mmt on Tuesday, with good yields in the east and west forecast to compensate for losses in the south to deliver above-average production. This is 23% larger than the previous season’s and 20% above the 10-year average to 2023/24.

Traders are also watching forecasts of crop-friendly rain in Brazil and Argentina this week which could benefit both soybeans and corn.

Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team

Ryan Easterbrook, Aaron Stockley-Isted and Jamie Kirkwood

Phone: +44 (0)20 7716 8477  or  +44 (0)20 7716 8140      Email: intl.grains@admisi.com

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