ADMISI London Wheat Report for 17 January
London Wheat Report
Temperatures fell as low as -14C (6.8F) making it the coldest night of winter, as new amber warnings are issued for heavy snow showers in Scotland later. Expectations that interest rates will be cut this year remain despite a surprise uptick in the UK’s inflation rate last month. Inflation, rose marginally to 4% in December, up from 3.9% in November.
Soybeans have been in the news of late and today EarthDaily Agro, a division of Canada-based EarthDaily Analytics, said data suggests Brazilian soybean farmers in top Brazilian grain grower Mato Grosso state are looking at the lowest yield trend of the past 15 years. Both software and satellite data firm projects Mato Grosso soybean yields at an average 52.12 bags per hectare in the ongoing season, more than 10 bags lower compared with the last one.
US Chicago wheat had a 20 cent range today starting the day down but having a turnaround in the afternoon to be up 10 cents at the time of writing. Soybeans, however, took a tumble today and were trading down 16 cents at the time of writing. Mixed news of late coming from South America has given the market plenty to think about. Corn had a mixed day, starting down before finding support later in the day.
FranceAgriMer has taken some volume from its forecast of French soft wheat exports outside the EU to 10.1 million metric tons from 10.2 million projected last month, now 0.5% below last season’s level.
Ukraine grain exports stand at 2.5M tonnes so far this month their agricultural ministry announced today.
European wheat markets couldn’t seem to make their minds up earlier on in today’s session. Both London and Matif were up, down and sideways. Later on in the day, markets found support and closed in the green. Like wheat, Matif rape was similar, finding support in the later stages and closing up. London volume was ok, May4, Nov4 and May5 all finished in treble figures. May4/Nov4 spread stands around the £14 mark. May25 saw some trading yesterday and again today, 175 lots going through.
Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team
Ryan Easterbrook and Aaron Stockley-Isted
Phone: +44 (0)20 7716 8477 or +44 (0)20 7716 8140 Email: email@example.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.
© 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.