Written Commentary
London Wheat Report
Source: FutureSource
Well, we are back in action after the Coronation Weekend. Annual 9th of May parade through Red Square looked a little light on the kit front compared to the usual tracked tonnage. UK/US are meeting to discuss support for Ukraine. Polish truckers are blockading the Ukrainian border in a protest to unfair trade. Zelensky is hitting out at the cruel EU for the imposed grain ban and support to the Eastern European states.
US and European wheat markets were, surprise surprise, off again today. US winter wheat ratings were pretty much steady on level with the recent rains offering support and not being totally wiped out as some depicted. Planting progress for corn and soybeans came in strong with US farmers definitely getting the hammer down and smashing in those acres. Canada appears to have some great acreage in that will help offset the issues seen in the US winter wheat area. Dryness in Western Canada has been muted.
US Crop Progress Report:
Corn Planted 49% complete (+23% WoW, +7% vs 5yr avg)
Corn Emerged 12% (+6% WoW, +1% vs 5yr avg)
Winter Wheat Condition 29% Gd/Exc (+1% WoW, unch YoY)
Spring Wheat Planted 24% (+12% WoW, -14% vs 5yr avg)
Topsoil Moisture Condition 70% Adequate/Surplus (-2% WoW, -4% YoY)
Subsoil Moisture Condition 65% Adequate/Surplus ( -2% WoW, -2% YoY)
USDA reported that massive Russian grain, oilseed exports will continue to flourish even with the ongoing military conflict in Ukraine with wheat exports still projected to reach a record high this marketing year. Canadian stocks estimates also show the active spring wheat export pace with stocks coming in at 13.26Mmt vs expectations of 14Mmt. Chicago and Matif were down with Matif pushing down again on yesterday with Sep-23 hitting a trading low of €233/t. London wheat also pushed lower with Nov-23 dipping under the £200/t levels from Friday on the back of last week’s green week. Traded volumes were strong with Nov-23 hitting over 600 lots traded. Big trading day that, for London wheat.
272kt of corn sales to China were cancelled today. Chinese lack of delivered imports were pretty lacking, pegged at 7.26Mmt. Brazilian soybean harvest continues to near completion, stated at 95.4% by Conab. Chicago soybeans were pushing lower today and while Matif rapeseed found support.
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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.
© 2024 ADM Investor Services International Limited.
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