Written Commentary
The Ghost in the Machine Q1 2024
March 19, 2024
ADMISI London Wheat Report for 29 January
- January 30, 2024
- ADMISI Grains Team
- Follow us on Twitter @ADMISI_Ltd
London Wheat Report
Iran denies it was involved in the drone attack which killed three US troops and injured 34 on a US base in Jordan, near the Syria border.
Long lines of tractors blocked highways near Paris and across France on Monday, as angry farmers sought to put pressure on the government to do more to help them weather inflation, compete with cheap imports and make a living. France’s protests follow similar actions in other European countries, including Germany and Poland.
Brazil’s 2023/24 soybean harvest had reached 11% of the planted area as of last Thursday, agribusiness consultancy AgRural said on Monday, up 5 percentage points from the previous week and above the 5% seen at the same time a year earlier.
Russian wheat export prices continued to decline last week amid oversupply pressure in the Black Sea region, but export volumes have gone up, analysts said. The price of 12.5% protein Russian wheat scheduled for free-on-board (FOB) delivery in the first half of March was $235 per metric ton, down $3 from the previous week. As of Jan. 26, Russia purchased 495,000 tons of grain, including 473,000 tons of wheat, into the state fund. The authorities planned to buy a total of up to 2 million tons of grain, starting from the end of December 2023, amid high supply and stockpiles in the country.
US Ags markets were on the end of a pasting today. Corn was trading down 8 cents, Beans down 10, Chicago and Kansas wheat down 12 and Minap wheat down nearly double figures (all at the time of writing).
More of the same on the European and London wheat markets. Down! London May traded down £3.20 in the early parts of Monday, before finding a little support to bring it off the bottom but still finished in the red. Nov 24 saw some volume with over 400 lots trading between 194.25 and 195. Overall volume across the curve was into the 700s. There was an interesting 100 bid on the Nov4/ May5 spread at £7.50 all day today. Nothing done there, however. May/Nov 4 spread was trading at £17 pounds today.
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