ADMISI London Wheat Report for 4 May

Well, the sub-par pyro seen at the Kremlin the other evening is getting the reaction it deserves and even more so now the US are getting blamed for it. It was very underwhelming. Fed hiked rates 25bps to 5.25% yesterday and the comments didn’t give much. ECB hiked 25bps in an effort to stem inflation. Banking chat is continuing with PacWest the latest to see its shares nose diving ….. guess uncle JPM will have to come to the rescue.

Wheat markets continued to be supported in both the US and EU, following on from yesterday’s sea of green. Grain corridor talks continue after yesterday’s first sit down session, nothing spicy to report bar JPM’s original statement that they would help the Russian Ag Bank to facilitate payments. US weekly wheat net sales were up 36% to 211,100t although exports were down. Nobody wants US supplies. Rouen’s exports were also underwhelming, down 46% to 79kt W-O-W. European wheat was stratospherically off in this week’s GASC tender and EU stocks are going to continue to build both this year and next year as exports are not hitting forecasts. Matif wheat started the day off marginally off then gained some traction towards the afternoon with Sep-23 trading around the €237/t mark as we approached the end of day trading. London wheat had a bearish day although Nov-23 traded volumes were pretty decent. London OI was stood at 22 at the end of the day.

Pace of planting has picked up in the US corn belt with rains forecast for the weekend. Algeria have hit the market for around 140kt of South American corn for May-Aug. A rare 55kt cargo of South African corn has arrived in China. US corn shipments are lowest on record at 54% of the export estimate. Brazilian oilseeds are at bargain basement pricing, moved from Farmfoods to Lidl, so still cheap. Chicago beans were trading down. Matif rapeseed was trading very much unchanged.