ADMISI London Wheat Report for 25 August

Source: Future Source 

Wheat markets in the US and Europe cooled in today’s trading with a lack of bullish market news. After some decent losses, market managed to find some level of support with US wheat markets only marginally lower and London back to unchanged. Matif still posts a reasonable loss on Dec21 and onwards, while Sept21 is down a staggering 27.50 on the day with good volumes despite being so close to expiry.

Germany’s 2021 wheat crop of all types is expected to fall 3.6% on the year to 21.37Mmt after poor weather according to estimates released by the German Ag Ministry today. Turkey’s state grain board TMO has issued an international tender to purchase 300,000 tonnes of milling wheat European traders announced today. Ukraine’s wheat harvest advanced to 32Mmt as of Aug 24 Vs 26.95Mmt as of Aug 28 according to the Ukrainian Ag Ministry’s data. The EU Commission’s August crop monitoring report did not note any major changes in yield forecasts from a month earlier.

 

US Corn continued to be bullish, Dec-21 trading up 8.5 at the time of writing. La Nina is expected to return to South America over the next 6 months which cutting the average rainfall by an estimated 20-30% (Reuters). This is anticipated to reduce the size of Argentina’s two cash crops, corn and soy while navigation of grain cargo ships on the Parana River is be even further complicated. Argentina’s grain output is expected to decrease by as much as 22% due to La Nina. Oilseeds continue to gain support from higher crude prices, Matif Nov-21 rapeseed up €5.50/t on the day. 

Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team

Hanne Bell & Ryan Easterbrook

Phone: +44 (0)20 7716 8477  or  +44 (0)20 7716 8140      Email: intl.grains@admisi.com

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© 2021 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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