Written Commentary
The Ghost in the Machine Q1 2024
March 19, 2024
ADMISI London Wheat Report for 1 December
- December 2, 2021
- ADMISI Grains Team
- Follow us on Twitter @ADMISI_Ltd
London Wheat Report
Source: FutureSource
Global markets started to recover in today’s trading after yesterday’s month end sell off. The new Omicron variant is starting to look more mild although more contagious than previous COVID variants which has offered some relief. Crude and equities gained pace as did gold. This helped ag markets gain although trading has been mixed. Trade is starting to take positions for next week’s WASDE in the states. Tenders continue to hit the market, especially with prices off recent highs post weekend. Tunisia issued a tender for up to 175kt of soft wheat alongside up to 92kt of durum wheat. Japan hit the market seeking Aussie wheat, skipping purchases from the US and Canada, tendering for 51kt of Aussie Standard White to be shipped in July. Chicago Mar-22 wheat remained mixed throughout the day, gaining 8 cents before the preopen before settling 5 cents up at time of writing. Kansas Mar-22 followed a similar pattern prior to turning significantly more bearish, trading down 3 cents at time of writing. Black Sea premiums are hard to define. Russian logistics in December are proving difficult and there are no real sellers as of yet for Jan-22 or any other forward positions. Russian export tax rumours say it could be hitting $90 by next week!
Matif followed US markets while remaining supported. Mar-22 settled up €1.75 on yesterday at €287.25/t. Gains were limited by a large chart gap opened during Tuesday’s slide and which was now acting as a resistance zone, according to traders. London wheat May-22 settled down £0.25 on yesterday at £228.25. The contract has lost ground on five consecutive sessions.
USDA announced a sale of 150kt of corn to Colombia. Trade is still analysing weather patterns in SA as current predictions are implying a lower corn and bean production but there is still lots of time on calendar to flesh that out. Chicago corn gained ground with Mar-22 trading up 6 cents on yesterday.
Sadly, due to our new best friend Omicron, the London Winter Bourse has been cancelled and tickets have been rolled across to the next one in Mar-22 apparently. We were really looking forward to this, meeting friendly faces old and new alongside a cheeky Xmas tipple. Hopefully it will be back in action in the New Year but we are always here for a friendly chat/catch up so don’t be a stranger!
Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team
Hanne Bell, Ryan Easterbrook, Dominic Enston, Aaron Stockley-Isted
Phone: +44 (0)20 7716 8477 or +44 (0)20 7716 8140 Email: intl.grains@admisi.com
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© 2021 ADM Investor Services International Limited
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.
© 2024 ADM Investor Services International Limited.
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