Written Commentary
The Ghost in the Machine Q1 2024
March 19, 2024
ADMISI London Wheat Report for 24 January
- January 25, 2024
- ADMISI Grains Team
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London Wheat Report
London wheat again in the red while external markets were in the green, especially Chicago wheat (Mar24 up 12 at the time of writing). A firmer GBP was partly to blame for the down day on our domestic wheat contract, but we also saw a fair amount of selling on the old crop May24, it seems some farmers have finally come to the market. Over 100 lots were sat on the bid at 183 which was acting as an element of support until a few decent sized clips went through.
London Wheat’s May24/Nov24 spread trades out to -15.20. Nov24/May25 trades at -7.50, where is this one heading? Surely there needs to be some incentive to carry the grain in what is likely to be a smaller crop year.
Malaysian palm oil futures traded fresh two month highs today on the back of a decline in Malaysian output. This is however in the face of a downturn in demand from China and India. These 2months highs did little for rapeseed, which gave back yesterday’s gains.
Ukraine’s exports through their own corridor have been moving at pace, having exported 4.8MMT in December. There is however concern that the shipping crisis in the Red Sea will hinder this. Passage through the Red Sea is very important for Ukraine as almost a third of its exports via the Black Sea corridor are sent to China. Ukrainian grain exports by sea in January could drop by around 20% compared with last month, a senior Ukrainian official said last week, mostly because of the Red Sea crisis.
Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team
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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