Written Commentary
Ag Market View for Apr 25.24
April 25, 2024
ADMISI London Wheat Report for 22 March
- March 23, 2023
- ADMISI Grains Team
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London Wheat Report
Source: FutureSource
WOW!! WHAT A DAY ON THE GLOBAL WHEAT MARKETS they took an absolute hammering today to continue the down trend of late. Bullish news that Ukraine’s 2023 harvest is set to fall 10M Tonnes from the 2022 numbers couldn’t stop the markets free falling. Chicago was trading in double digit downs most of the day and the European markets were well down all day. Matif Wheat opened down 2 Euros across the board and then continued on the slide. Matif May23 was trading down 6/7 Eur most of the day. Volumes were strong 100K+ lots traded across the entire curve.
As of 14/03/23, the US funds are running a 98K lot short position. Just when will the funds start squaring up their short position in the US? At some point, the buying will begin but how much further will prices decrease before this is the case is everyone’s guess.
London Wheat saw losses on a daily scale rarely seen. May 23 traded down nearly £10 and Nov 23 similar. Volumes were also strong with over 1100 lots crossing the line as an outright which again is rarely seen. May23 also saw a 407 and a 163 lot AA go through at £190. The May/ Nov 23 spread is now trading at -15, this was trading +8 a month ago. Late afternoon the market found a small bit of support and was trading at £194 and £209 for May and Nov respectively.
Will tomorrow see similar volumes and volatility? Only time will tell. Good evening all!
Contact the ADMISI Grains and Oilseeds Derivatives Brokerage team
Hanne Bell, Ryan Easterbrook, Dominic Enston and Aaron Stockley-Isted
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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