ADMISI London Wheat Report for 3 May

Wheat markets continued this morning where they had left off in the past few weeks, Bearish. Much of the same news and weather stories continued the down trend. However, news around lunchtime that the Kremlin came under attack from a couple of drones which were sent to assassinate Putin, turned the markets around. Russia pumped news that this was the turning point and would no longer negotiate with Ukraine. Is this a classic Kremlin false flag? Or did Ukraine manage to fly a drone from the border all the way to the Kremlin? Your guess is as good as mine. Looking at the video, I’ve seen bigger explosions on Guy Fawkes night at the local rugby club.

Apparently this Friday, 5th May. All parties involved in the Black Sea corridor grain deal would meet. Although Russia’s Foreign Ministry said on Wednesday that proposed talks between Russia, Ukraine and Turkey on the Black Sea grain deal on May 5 have not yet been agreed. Turkish state-owned Anadolu news agency quoted Turkey’s Defence Minister Hulusi Akar as saying the grain deal would be discussed at a meeting in Istanbul. The ‘’To me, to you’’ of the grain corridor continues.

Yesterday’s GASC tender was reported at 655,000 tonnes and today further details emerged of just how that 655K was made up. The majority was cheap Russian wheat. The total is believed to involve an estimated 535,000 tonnes sourced from Russia and 120,000 tonnes from Romania. GASC’s wheat was purchased at $260 and $250 a tonne on a free-on-board (FOB) basis, traders said in assessments on Wednesday. This was in line with price estimates on Tuesday night. GASC had announced the tonnage bought but gave no price details.

London Wheat May open interest dropped to just 60 lots. May 23 saw some trading today and 49 lots traded between 181 and 185. Last trade @ £182.65 down £6.35 on the day. November 23 saw a low of £192 before finding support after the ‘’Kremlin attack’’ news, eventually trading up to £198 +3.25 on the day. Small amounts traded on May24 and Nov 24 also. Volumes were average with around 500 lots crossing the line across the curve.