Written Commentary
The Ghost in the Machine Q1 2024
March 19, 2024
ADMISI London Wheat Report for 26 January
- January 27, 2023
- ADMISI Grains Team
- Follow us on Twitter @ADMISI_Ltd
London Wheat Report
Source: FutureSource
Nearly Friday ladies and gents.
US economic growth has beaten expectations with fourth quarter GDP increasing at 2.9% rate. Consumer spending was solid while business investment weakened. Momentum was constant before dipping toward the end of the year as higher interest rates eroded demand. Turkey has stated today that they are currently indefinitely blocking Sweden and Finland from joining NATO because Turkey is still up in arms over the Swede’s stance on the Kurdish issue.
Ag markets seem to all be in the blue in this afternoon’s trade. Wheat markets in the US and Europe were supported, bargain buying alongside stronger US weekly wheat sales, which climbed 6% to 500,400t although exports did slip 15%. Kremlin announced that they are considering plans (which basically means they will be doing this) to sell wheat to Egypt and Turkey in rubles instead of US dollars. Ukrainian 2023 wheat production is anticipated to be circa 16Mmt according to the Ukrainian Grain Association. India announced that they intend to sell circa 3Mmt of wheat in the open market to cool prices.
Matif wheat was supported on the back of technical buying and tender announcements. Mar-23 wheat settled higher, up €3.50 on yesterday at €288.75/t after hitting a trading high of €291.25/t. London wheat also gained support, following Matif higher. Volumes are still pretty low.
106kt of beans to China. Chinse New Year is still in full flow. US soybean sales were 16% up on the week, within expectations at 1.1Mmt. 16% up on previous week. China is posed to import a substantial amount of corn from Brazil according to the USDA attache. US weekly corn net sales were down 20% at 910,400t although exports were up 28%. Plenty of rains forecast for South America. Matif Rapeseed shot up with May-23 settling up €11.75 on yesterday at €544.50/t.
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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.
© 2024 ADM Investor Services International Limited.
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