ADMISI London Wheat Report for 2 March

London Wheat Report

ADMISI London Wheat Report 02.03.23 chart

Source: FutureSource 

Well Musk got a big fat no today from the US regulators regarding his bid to test brain chips in humans. Let’s see what he reverts back with. US and EU sparred with Russia at the G20 meet, little appears to have been accomplished apart from words. Beijing have ordered In the superchargers as they announce that their 2023 growth target has cranked up to 6% from a previous 4%. In Germany, an interesting argument is brewing ahead of Tuesday’s EU vote to ban the sale of new electric cars by 2035, certain ministers want the ban to not include internal combustion powered by synthetic fuels … look up what Porsche are up to in South America. Electric cars just don’t have the soul of something with a big fat V8 do they.

Well, we’re looking a little different on the ag markets today after the recent down, down, down. Bullish chatter from the land of Aus last night started saying that the 23/24 wheat crop faces risks from the aftermath of La Nina ending. Stateside seem to have jumped onto this bandwagon in a few market reports that I have read today. After Chicago wheat hit level unseen since Sept 2021, buying kicked back in again as it moved into the oversold territory and funds coming back onto court to take some profit. Rouen’s weekly wheat exports are still slow sitting at 74.6kt, what happens if you are the Waitrose of the wheat export world, you just can’t compete with the Costco sitting in the North East Black Sea region. Some great market chatter that India may have to start importing wheat – do we reckon the Kremlin will do a BOGOF deal with them, having become their primary crude supplier? Iran have secured additional Russian wheat in the latest tender even though, on paper, monies are outstanding ….. think something else is being used as payment here. US weekly wheat sales were down 16% although exports kicked up, with a 81% rise.

Matif turned around and started to claw back some of the losses of recent days with May-23 still hitting a similar low of €271/t before sitting around the €276/t for most of the day settling up on yesterday. There’s a lot of chatter about European dryness and South American dryness – same old boring chatter. Things will only get spicy if a limpet mine is put onto a Panamax carrying grain through the Dardanelles. London wheat followed Matif higher from yesterday’s lows. London May-23/Nov-23 spread saw some action today, going from a trading low today at the start of -1.5 to last trading at -1 at the latter half of the day.

Chicago beans had a rally in the latter end of this afternoon after some higher Illinois domestic basis. Talk last night of China buying some US corn cargoes. 4 vessels left Ukrainian ports for China yesterday. Questions to ask is have we seen the back of this war premium? USDA keep Brazilian soybean crop unchanged at 153Mmt even though private market estimates are all confident in 154Mmt.

Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team

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© 2023 ADM Investor Services International Limited3

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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