ADMISI London Wheat Report for 27 April

London Wheat Report

Source: FutureSource 

Malaysian palm oil hit the roof overnight as the trade worries that Indonesian exports will not get on the boats before the ban goes into effect at midnight tonight. Indonesia’s planned export ban on cooking oil’s raw material will cover crude palm oil, refined palm oil and used cooking oil, among other palm oil products, its chief economic minister said on Wednesday. The announcement was a reversal of the minister’s statement a day earlier, in which he had said the export ban would only cover refined, bleached, and deodorized palm olein according to Reuters.

Palm oil is trading at a 7 week high and the oilseed complex cracked on higher. Chicago soybeans May-22 were trading up 19 cents at time of writing, soybean oil was pushing higher and Canadian canola was also pushing higher with May-22 canola trading up 17 cents at time of writing supported by Stat. Matif rapeseed cooled off with Aug-22 settling down €4.00 on yesterday at €876.50/t.

Russia’s Gazprom has halted supplies of gas to Poland and Bulgaria. Both countries refused to pay Gazprom in roubles. Both countries are saying they have adequate gas in storage to supply industry as domestic usage will reduce substantially in the summer months. The rouble soared to a more than two year high against the Euro on Wednesday.

Wheat markets remain mixed with US markets pushing lower while European markets remained supported. Algeria bought between 230kt and 250kt of Durum wheat of apparently Mexican origin. Jordan reissued the 120kt feed wheat tender. Thailand are said to have passed in feed wheat tender. Matif Sept-22 settled up €3.75 on yesterday at €378.25/t.

Romania has issued a tender to rehabilitate a Soviet-era train line connecting its port of Galati on the Danube to help Ukraine boost rail based exports. Galati has a disused Soviet-era rail line to Ukraine via Moldova with the wider gauge that would allow Ukrainian goods to be shipped easily to the Romanian port. The Danube port will become a major lifeline for Ukrainian grain to Constanta. Grain exports by rail freight are still sat around the 650kt a month. Deutsch Bahn have also joined the party to try and coordinate and streamline rail logistics out of Western Ukraine. Bottlenecks and gauge changes remain an issue that needs to be addressed ASAP. 

 

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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