ADMISI London Wheat Report for 3 January

Happy New Year to all!! Hope you all had a wonderful Xmas break, full of festivities with friends and family and plenty of sauce. A New Year and more excitement, let’s hope that 2023 will not be as eventful as 2022.

Well usual primary news items continue. Lots of talk today about Ukraine using US missiles to strike a Russian Army garrison that has reportedly killed a substantial number of Russian troops. Expect Russian Pyro to be sent in return to this imminently. China COVID issues continue with COVID rife through Beijing, tbf it’s like the flu now in current guise. Good old Mike Lynch starts off 2023 with his quest to bring down the government with another week of train strikes … quest to automate train doors has just jumped the queue even further. Teachers are balloting currently on strike action in response to the 5% pay rise. Royal Mail workers continue to put their heads in the sand and Royal Mail management are under fire for being too ‘uncooperative’ in discussions. Less Blitzkrieg, more hugs required apparently. So all exciting stuff.

Well a pretty off day across the markets, both in the US and Europe today. Rains in Argentina have supported the bearish sentiment on US markets even though 50% of the cropped area did not receive any rain. US export data was weaker than market expectation which also didn’t help. Matif wheat was lower in today’s trade following on aggressive Russian export sales, which continue to drive down prices. Sovecon increased their 2022/23 Russian wheat export forecast by 0.2Mmt to 44.1mmt on Friday. Last week’s GASC purchase of 200kt was all Russian wheat.  Mar-23 Matif wheat settled down €6.25 on Friday at €303/t.

London wheat had a true rave day, a total of 60 lots were traded. Big time ey. London wheat also followed Matif lower in today’s trade.

Brazil’s corn exports hit a record in December 2022 at 6.4Mmt according to customs data, 3Mmt increase YOY. Chinese buying seems to be a trend here. Brazil’s Lula government has also extended tax exemptions for biodiesel. Brazil are also now apparently going to be developing a USDA style agency according to the new govt.  A five-week currency devaluation that expired on Dec. 30 spurred farmers to sell 6.4m metric tons of soybeans to crushers and exporters, according to the Buenos Aires Grain Exchange.