ADMISI London Wheat Report for 14 September

London Wheat Report

14092022-table

Source: FutureSource 

Not much excitement on the ag markets today with macro data surrounding the ongoings. Brent crude rose 2% on supply concerns and expectations for fuel switching according to the international Energy Agency who expect a significant amount of gas to oil switching. Kremlin made an its first announcement 2 days after the Ukrainian offensive which was slightly different to the usual rhetoric of smoke and mirrors. Still on the Ukraine must not join Nato narrative but different to recent. This is what does make markets slightly jittery with what is going to appear next. President Xi and Putin are meeting towards the end of the week which will also be interesting to see what comes of this. UN murmurings around firing up the Russia-Ukraine ammonia 2,500km pipeline may shed some light on the future of the grains corridor. This could be bearish for wheat if an agreement is reached. Standard chatter in the Black Sea continues and corridors are still operating.

Certain US railways go on strike on Friday, must think Mike Lynch and the RMT are an act worth following, with some railroads halting crop shipments tomorrow. May get people excited although from past union skirmishes, they don’t seem to last long. Also some excitement for tomorrow is that the USDA is meant to dump a month’s worth of export data. Stats Can’s all wheat number has been released as 34.7Mmt which would represent its 3rd best wheat crop ever. Russian wheat exports continue to gain pace with non-traditional destinations starting to appear also. Another reason why it would appear they do not want to interfere too hastily into the grains corridor deal but this is the Kremlin, the renown rational decision makers. Matif Dec-22 settled up €1.00 on yesterday at €337.25/t.

Canadian Canola production is expected to rise to 19.1Mmt, 38.8% up on last year as growing conditions on the prairies have been pucker compared to 2021. Argentine farmer soybean sales have jumped to 2.15Mmt in the first seven days of Sept 22 following the preferential exchange rates for export by the Argentine govt. Brazilian soybean crush is bumped up once again, expected to hit 48.9Mmt and overall crush capacity to hit 66.7Mmt according to Brazilian vegoil association – up 4.1% on the previous report. Matif Nov-22 rapeseed settled down €14.50 on yesterday at €592/t.

Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team

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© 2022 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.

© 2021 ADM Investor Services International Limited.

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