ADMISI London Wheat Report for 18 August

London Wheat Report

Source: FutureSource 

Mixed day of trade on the markets today with wheat markets going lower once again with Chicago wheat hitting new lows.

Wheat added to losses from Wednesday as continuing flows of grain shipments from Ukraine continue to flow alongside the substantial Russian harvest forecasts. “The macro environment is on the negative side of the ledger and fundamentals are skewed bearish: Ukraine exports, China recession/demand concerns, Iowa rains, cooler European temps and better Midwest forecasts,” Peak Trading Research said in a note. In Ukraine, one more ship carrying grain has left Chornomorsk port, Turkey’s Defence Ministry said on Thursday, the 25th vessel to leave Ukraine’s Black Sea ports under a U.N.-brokered grain export deal. In Russia, consultancy Sovecon on Tuesday raised its forecast for the 2022 wheat crop to 94.7 million tonnes from 90.9 million, and traders have reported falling Russian prices after a slow start to the country’s export campaign. They really need to start shifting some wheat out otherwise there is going to be a substantial domestic glut. Matif Sep-22 settled down €13.50 on yesterday at €313.75/t.

China’s state stockpiler Sinograin and top state-owned grains trader COFCO have formed a joint venture to operate the country’s grain reserves, state media reported on Thursday.

This year’s French soft wheat harvest was showing mixed protein scores and good results for test weights and Hagberg falling numbers, according to preliminary quality results published by FranceAgriMer. For protein, among key requirements for milling, 33% of soft wheat analysed so far was showing 11-11.5% content, 23% was at 11.5-12% and another 20% at 12% and above, the survey conducted by FranceAgriMer with crop institute Arvalis showed. Some 85% of the crop analysed so far was above the 76 kilo per hectolitre level widely used as a milling standard, compared with just 31% in last year’s harvest.

Chicago corn was trading unchanged. Weather forecasters have another useful rain event penned in those same regions about a week out. The evolution of forecast for that event will likely remain an influence. Chicago soybeans found support on new crops sales of 90kt and on the back of additional support from Crude due to lower than anticipated US reserves.

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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