Written Commentary
The Ghost in the Machine Q3 2023
September 19, 2023
ADMISI London Wheat Report for 11 August
- August 12, 2022
- ADMISI Grains Team
- Follow us on Twitter @ADMISI_Ltd
London Wheat Report
Source: FutureSource
WASDE day tomorrow. Turnaround Thursday as US Ags fired up again after another U turn in the US weather forecast as the wetter forecasts of yesterday changed to mediocre scattered showers. Contradicting opinions between the forecasts depending which side of the pond you are sitting on. Weather factors are still being traded and I suppose this will continue.
London wheat settled up with both Nov and May settling up in contrast to Matif Sep-22 which settled down €2.50 on yesterday at €338 and Dec-22 settled up €0.75 on yesterday at €328/t. US weekly wheat sales are up 44% on last week, reaching a marketing-year high – 359,200t. This gave Chicago wheat some umph. Matif remains sluggish, trying to find a path, not helped by Black Sea grains corridor and also the strengthening Euro is eating into export potential. EU maize issues should offer support as the weather losses are starting to be quite substantial and far more than what the USDA is implying. Japan purchased 83kt of milling wheat from the US and Canada. Egypt have stated that they have ample wheat supplies for at least 7 months …. Expect GASC to hit the market asap. Romania have announced that their wheat harvest is anticipated to be 15-18% lower YOY.
We were sent in this snap earlier today by a client on the Welsh borders to demonstrate that it’s not just sheep to be found in Wales. Planet Spring Barley yielding circa 8t/ha apparently.
The Razoni bulk carrier has found a buyer for the shipment of corn that was rejected by Lebanon. 1500t is being offloaded in Turkey and will later continue to Egypt with the remainder of the load to offload 26,527t. Consultancy Strategie Grains slashed by 10 million tonnes, or 15%, its forecast of the European Union’s maize (corn) harvest due a 15-year low due to severe drought. Some market estimates are even lower with the EU corn crop could be as low as 53Mmt. Matif Nov-22 maize settled up €4.25 at €334.75/t.
Brent Crude is testing the highest levels of the week. Matif rapeseed Nov-22 settled up €1.00 on yesterday at €660/t.
Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team
Hanne Bell, Ryan Easterbrook, Dominic Enston and Aaron Stockley-Isted
Phone: +44 (0)20 7716 8477 or +44 (0)20 7716 8140 Email: intl.grains@admisi.com
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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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