ADMISI London Wheat Report for 8 January

Snow has started falling in parts of the UK, as the country braces for a week-long cold spell. South-east England will see a mix of snow, sleet and rain during Monday. The private US Moon mission launched on Monday has run into technical problems. The Astrobotic company behind the project says its Peregrine spacecraft has experienced an “anomaly” that has stopped it from pointing its solar panels stably at the Sun.

Russian wheat export prices have increased in the last two weeks which has been put down to smaller market activity over the holiday period. The price of 12.5% wheat for FOB delivery in Feb was $244 up $1.

German farmers are ramping up their protests against subsidy cuts by the government. Convoys of tractors and trucks gathered on roads in sub-zero temperatures in nearly all 16 federal states, while protesters clashed with police. Videos coming from Germany show hundreds of tractors blocking major roads throughout Germany.

Ukraine’s grain exports so far in the 2023/24 July-June marketing season have fallen to about 19.4 million metric tons from almost 23.6 million tons at the same stage last year, agriculture ministry data showed on Monday. The volume exported this season includes 7.8 million tons of wheat, 10.3 million tons of corn and 1.2 million tons of barley.

Brazilian soybean farmers have begun to reap their 2023/24 soybean crop, covering some 0.6% of the national planted area as of last Thursday, agribusiness consultancy AgRural said on Monday. Field work is more advanced in top grain state Mato Grosso, where yields “are much lower than normal” after hot and dry weather destroyed part of the crop. In large producer Parana state, the yields are “very good and in line with farmers’ expectations,” AgRural said.

CBOT markets took an absolute hammering today as Monday saw prices slashed. Beans were down 20 cents this afternoon, Chicago wheat similar. Kansas and Minapp wheat were down nearly double figures, as was Corn. European markets were off today too. Matif wheat closed down on average 2.5 euros across the curve. Rapeseed took a seeing too also, closing down 4 euros. London had a busier day than of late. 500 odd lots crossed the line across the curve. The majority of volume was on the May24 contract. May was trading down £2 this morning, but this afternoon came off the bottom but was still trading down over the pound mark. The May/ Nov spread was trading at 11 on Friday, this is now over £13.