ADMISI London Wheat Report for 12 Dec

London Wheat Report

LWR-Chart 121223

After US wheat markets were battered yesterday they were back on the front foot today. The rally looked to be led by Kansas HRW wheat, Mar24 trading up 29 cents at the time of writing. Apart from a marginal decrease in USDA conditions (39% GD/Excellent vs 40% last week) there wasn’t much HRW specific news we could see. Could there be some more Chinese demand?

Argentina on Monday temporarily suspended its grains export register – a move that comes one day before new President Milei is set to announce a series of economic measures. The markets didn’t seem too bothered, and didn’t really react in the overnight session. Various Argentine governments have in the past suspended the grains register only to reopen it days after announcing economic measures. Milei’s economic announcements are expected to include far-reaching fiscal changes and cuts to social spending. Markets are also speculating on a possible devaluation of the local peso.

France is expected to see a sharp fall in planting of winter wheat due to heavy rains disrupting fieldwork, says FranceAgriMer. In its first sowing estimates for next year’s harvest, they project the soft wheat planted area for the 2024 harvest at 4.49 million hectares, down 5.1% from the area harvested this year and a four-year low for sowing. The winter barley area was pegged at 1.31 million hectares, down 4.0%, though that would be 3.1% above the average of the past five years.

London wheat was incredibly sluggish and reluctant to get behind the rally. Not the most exciting of sessions with only 105 lots traded outright on screen, and a couple AAs going through.

Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team

Hanne Bell, Ryan Easterbrook 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.

© 2024 ADM Investor Services International Limited.

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