ADMISI London Wheat Report for 14 February

Brent crude was trading down today as President Biden announced intentions to sell 26 million more barrels from the Strategic Reserve. Moldova continue to say that there is the possibility of a Russian coup and closed their airspace earlier but has now reopened. CPI figures were released in the US today which were actually slightly higher than anticipated, coming in at 6.4% Y-O-Y compared to market anticipations of 6.2%. Diplomatic spat deepens as the US investigates the balloons that were found. Nato have now announced that they will be open to supplying Western Fighter jets to the Ukrainians.

Black sea chatter continues to support the wheat markets. Russia’s outstanding wheat export sales hit 2.9Mmt last week according to SovEcon. Increasing futures prices on Chicago and Matif are helping Russian wheat regain competitiveness, even though it has been under for a while. Current spread between Matif wheat prices and Black Sea rose to circa $17-$18 from $0-$5 in January. Fresh news was limited on the market. Matif wheat was supported earlier in the day before pulling back on earlier highs, with May-23 settling up €0.75 on yesterday at €0.25/t. Chicago was trading lower at time of writing. London wheat had a better day volume wise, with more activity seen across both May and Nov 23 and also May-24 was traded. Total of 338 lots were traded.

Mexico on Monday scrapped a deadline to ban genetically modified corn for animal feed and industrial use amid trade tensions with the United States, but retained plans to prohibit use of the grain for human consumption as well as the herbicide glyphosate. Brazil’s soybean exports have gone nuclear in the first two weeks of Feb, coming in at a total of 1.3Mmt, a surge when compared with the last week of January of 362.2%. Matif rapeseed May-23 settled down €1.75 on yesterday at €553.50/t.