ADMISI London Wheat Report for 3 July

Tomorrow is Independence Day in the US so US markets will be closed.

Welcome back after a dirty weekend in the cricket. Wimbledon kicks off today so let’s see how Djokovic the weapon gets on. Tour de France has kicked off for the lycra enthusiasts. Saudi and Russia are deepening oil cuts to try and pump prices up, Saudi’s 1M barrel output cut has been extended for another month to include August and Moscow is cutting oil exports by 500k barrels a day in August. Brent was up just over half a %.

Markets are still reacting to the complete swipe at the acreage report and beans it most certainly was. Chicago beans were again supported in today’s trade with Aug-23 beans up 40 cents at time of writing. US soybean inspections were up 71% to 250kt in week ending 29th June. News on the markets that China’s experiencing some seriously hot and dry weather which will impact their bean crop, how true this is anyone’s guess, but it will most certainly be down to Brazil to fill in the majority rather than the US. Strategie Grains lowered their forecast for EU rapeseed production by 600kt to 19.8Mmt, down from 20Mmt in earlier predictions. Matif rapeseed was also supported today with Nov-23 trading around the €467/468 levels heading into the close.

The European Union is considering a proposal for the Russian Agricultural Bank to set up a subsidiary to reconnect to the global financial network as a sop to Moscow, the Financial Times said today. Nothing new here as this has been muted for quite a while but the EU’s narrative is very much singing the same as the US now – with access to SWIFT being the primary element.

US weekly wheat inspections rose to over 336kt, within trade estimates. Wheat news in Friday’s report was bearish over all as spring acres came in above expectations. Winter barley harvesting has kicked off in parts of the UK with the early nibblers itching to get the combines out. Wheat markets were pulling back again today with Matif Sep-23 pushing lower, trading around the €226/t levels into the close with London wheat following closely, pushing lower. Traded volumes were pretty good on both Matif and London today.