Written Commentary
Ag Market View for July 26.24
July 26, 2024
Source: Future Source
Wheat stole the show today, posting sizeable gains across all the major exchanges. London wheat settles up 3.85 @ 186.35, but down from the highs of 187. Milling wheat settles just off the highs, trading with forward momentum into the close. The story is largely due to the sizeable cuts to the Russian wheat crop, that have caught the market a bit by surprise.
On Friday, Russian agri consultancy IKAR cut their 2021 wheat production number to 78.5 MMT, down from 81.5 MMT. Today, SovEcon followed and slashed their forecast to 76.4 MMT, down from 82.3 MMT previously. This was due to the substantially smaller winter wheat area that was reported by Rosstat. The latest USDA estimate for the 2021 Russian crop was seen at 85MMT.
Egypt’s GASC today purchased 60,000 tonnes of Romanian wheat for shipment between Sept. 24 and Oct. 4.
Strategie Grains have maintained their forecast for the EU’s 2021 rapeseed production at 17.03 MMT, up 2.5% from 2020’s 16.61 MMT. Whilst production is up on the year they have cautioned that overall supply could remain tight as overall stocks are expected to decline.
Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team
Hanne Bell & Ryan Easterbrook
Phone: +44 (0)20 7716 8477 or +44 (0)20 7716 8140 Email: intl.grains@admisi.com
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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.
© 2021 ADM Investor Services International Limited.
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