ADMISI London Wheat Report for 6 February

Happy Monday all!

Well what a shocker in the 6Nations on Saturday, England didn’t pull through with anything substantive and Wales just had a shocker. Still, Guinness was flowing in SW London pubs and everyone was well sauced. And Scotland did play well tbf.

A substantial earthquake has reportedly killed circa 2,200 people in Turkey and Syria last night followed by a secondary quake earlier today/ Magnitude was a reported 7.8 which was the worst quake to strike Turkey this century and has heaped further destruction onto Syrian cities that have been struggling since the war. Chinese weather balloon got blown out the sky by a F-22 raptor over the weekend, more political stance by Biden rather than anything substantive really.

Not too much excitement on the wheat markets today really. Chicago creeped up on the open before falling back lower. Wheat firmed on technical buying initially and with record high prices in India adding support alongside better than anticipated weekly wheat inspections. US weekly wheat inspections rose to 536,355t, increasing 20% W-O-W. Algeria launched a couple of tenders for 100kt of milling wheat. Russia’s wheat-export duty will rise next week to 4,497 rubles a ton ($63.75) from 4,365 rubles, Interfax reported, citing the agriculture ministry. Russian wheat prices fell further last week with 12.5% FOB Black Sea down $7/t to $297/t according to IKAR. Matif and London pushed higher, helped by the strengthening dollar. London had a pretty quiet day overall with low volumes traded.

USDA announced 111,800t of corn to Japan and 200kt of corn, split between 22/23 and 23/24 to Mexico. US farmers also appear to be very keen to be bullish on corn acres to be planted. Analysts at S&P Global Commodity Insights forecast U.S. farmers would plant 90.5 million acres of corn in 2023, 2.2% more than the previous year, and a more modest 0.6% increase for soybeans, mirroring other early forecasts. Egypt’s GASC has bought Ukrainian corn @ $308/t FOB in a private deal.

The shooting down of the balloon has been cited as another reason why China has turned to South America to focus on bean buying although this is a bit of a long shot to an extent. Rains continue to slow Brazilian soybean harvest works. US soybean inspections fell within expectations at 1.8Mmt. Chicago beans were trading lower.