ADMISI London Wheat Report for 14 July

London Wheat Report

ADMISI London Wheat Report

Source: FutureSource 

US wheat export sales gave the market a surprise, coming in at 1.02Mmt which pushed up Chicago wheat before it came off again. Lots of continued market chatter regarding the Ukrainian wheat corridors with parties saying that grain deal is ‘step closer’ after talks in Turkey. What this actually means is up for debate. Certain elements have apparently been agreed with the Kremlin but there is still some way to go. A preliminary date for the next hearing is set for July 20-21st according to the Russian news agency, RIA. Maitif wheat Sep-22 settled down €1.50 on yesterday at €342.75/t after hitting trading lows of €335.5/t after the initial news was released.

Consultancy Strategie Grains on Thursday cut all its forecasts for this year’s grain crops in the European Union, as it fine-tuned wheat and barley estimates as harvest progresses in the bloc and pointing to dry weather threatening maize fields. The EU wheat crop was expected at 123.3 million tonnes, down from 124.4 million projected in June and below the revised 129.9 million tonnes harvested last year, it said in a monthly report. Germany’s 2022 wheat crop will increase 5.3% on the year to 22.51 million tonnes despite a recent heatwave and dryness, the country’s association of farm cooperatives said in its latest harvest estimate on Thursday.

IKAR has cranked up its Russian wheat harvest 2022 forecast to 90.5Mmt from the previously expected 88.7Mmt which is an absolute stonker. Its all grain production forecast is currently at 138.5 million tonnes, of which 56.1 million tonnes would be available for export. Japan purchased 130,900t of wheat from the US, Canada and Australia. Dry weather seen pushing down Argentina’s wheat harvest forecast Argentina’s wheat harvest for the 2022/23 season is expected at 17.7 million tonnes, down from a previous estimate of 18.5 million tonnes, the Rosario Grains Exchange (BCR) said late on Wednesday

Brent crude is down again today, trading down 1.35% at time of writing at $98.15/ba at time of writing. USD continues to make fresh highs. Brazil’s 2022/23 soybean forward sales reached 13.4% of the expected production by July 8th. Matif rapeseed Aug-22 settled up €0.75 on yesterday at €669.25/t.

Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team

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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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