ADMISI London Wheat Report for 8 August

London Wheat Report

Source: FutureSource 

A ying and yang day to kick Monday off. Dollar cooled off in today’s trading and Brent hit its lowest level since March, hitting a trading low of $93.01/ba at time of writing.

Chicago wheat started the main session pushing lower on news of increased Russian wheat harvest and continued shipping leaving Ukraine. IKAR upped Russian 2022 wheat crop to a whopping 95Mmt, from a previous 90.5mmt due to higher yields in Central and Volga regions. Debate runs what this encompasses but there is still no doubt of an absolutely stonking Russian wheat crop. The Razoni bulk carrier has had a minor issue with the initial shipment reported to have Aflatoxin, a new buyer is being sought. First ship to arrive in a Ukrainian port landed over the weekend according to Infrastructure Minister Oleksandr Kubrakov. Two ships are due to leave ports today taking the total number of ships to have departed to 10 since the Razoni sailed last week. Third port of Pivdennyi up and running under the deal. Chicago wheat bounced back as chatter started up on lower Russian exports compared to increased wheat crop. Funds are net short Chicago wheat on the latest CFTC. Matif Sep-22 settled down €1.50 on yesterday at €341/t.

Water levels on the Rhine in Germany fell again during hot dry weather over the weekend and cargo vessels cannot sail fully loaded, vessel brokers and commodity traders said on Monday. This is starting to cause headaches for new crop logistics.

Italy have hit the US for corn due to an EU corn shortage, especially in Italy which has been hit by substantial droughts since the spring. USDA reported private sale of 105,000 metric tons of corn for delivery to Italy during the 2022/2023 marketing year. Italian buying has also spurred on talk that the EU may drop GMO import restriction which could increase demand for US corn. Improved weather conditions in the states  US corn is now at discount to Brazil. Chicago Sep-22 corn was trading unchanged at time of writing.

Soybeans and soybean oil found support following the US Senate passing the Inflation Reduction Act. Matif Nov-22 rapeseed settled up €2.50 on Friday at €655.75/t.

Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team

Hanne Bell, Ryan Easterbrook, Dominic Enston and Aaron Stockley-Isted

Phone: +44 (0)20 7716 8477  or  +44 (0)20 7716 8140      Email: intl.grains@admisi.com

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest.  If necessary, seek independent financial advice.  ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG. A subsidiary of Archer Daniels Midland Company.

© 2022 ADM Investor Services International Limited

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.                  

A subsidiary of Archer Daniels Midland Company.

© 2021 ADM Investor Services International Limited.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now