Written Commentary
The Ghost in the Machine Q1 2024
March 19, 2024
ADMISI London Wheat Report for 6 February
- February 7, 2024
- ADMISI Grains Team
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London Wheat Report
The Food and Agriculture Organization’s (FAO) price index, which tracks the most globally traded food commodities, averaged 118.0 points in January, down from 119.1 the previous month, the agency said on Friday. The January reading was the lowest since February 2021.
European farmers continue to strike across the block. Spanish farmers have now joined the unrest and a large demonstration is now planned in central Madrid for later this month. In response the European Commission President Ursula von der Leyen told parliament on Tuesday that she plans to stop the plan which was to halve the use of pesticides that farmers could use. Plans were drawn up to help accommodate the EUs ongoing ideas to reduce emissions. Today, the EU commission announced its target to reduce greenhouse gas emissions by 90 percent by 2040, with the end goal of being net zero by 2050.
Brazilian farmers have sown 27% of the area expected to be planted with second corn in the center-south, marking the fastest pace for second corn planting since records began in 2013, agribusiness consultancy AgRural said on Monday. Sowing of Brazil’s second corn, which represents about 75% of the national output in a given year, is up 11% from the previous week, according to AgRural data.
Putin is planning a visit to Turkey to discuss ‘’ the war in Ukraine and the Black Sea Grain Initiative’’ according to Turkish president Erdogan. It is also thought the two country leaders will discuss setting up a ‘’gas hub’’ in Turkey. The date of the visit has not been announced but is significant as this would be Putin’s first visit to a NATO country since the invasion of Ukraine.
London wheat had a very quiet morning, a solitary 1 lot of Nov 24 had traded by Noon. The market was unchanged until gone 3PM when it found a little support before returning pretty much unchanged on the close. May closed slightly up and Nov slightly down. The spread widening slightly to £18.50. The afternoon volume increased and in total around 250 lots crossed the line.
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