ADMISI London Wheat Report for 26 October

London Wheat Report

Chart 26 October 2022

Source: FutureSource 

Bit of an uninspiring day on the grains markets today, about as inspiring as Ford announcing the end of the road for the Ford Fiesta, give me a F150 any day of the week. Yuan in China posted a decent rally as Chinese banks were instructed to dump USD. GBP had a decent session, hitting trading highs against USD of 1.1638 at time of writing and Brent crude hit highs today of $96.09/ba at time of writing.

US and Matif wheat struggled to gain any momentum. US values are anticipated to be suppressed unless any action fires up on the Black Sea which would augment demand for US wheat. Pakistan issued a tender for 500kt of wheat with a reported 8 offers received. Algeria estimated to have purchased 80kt of wheat for small ports @ 11.5%, paying a reported $381/t CFR. Murmurings in Argentina about the wheat crop and contemplations regarding the export licenses. EU wheat continues to struggle as Russian wheat continues to offer substantial discounts with 12.5% down to $305/t and 11.5% now sub $300/t. Mississippi water woes continue to tighten capacity for shippers with US exporters now seeking rail capacity.

London wheat Nov-22 open interest continues to dwindle with open interest standing at 260 on tonight’s close. Matif Dec-22 settled down €2.25 on last night at €334.25/t.

Chicago soybeans remain supported. No evidence of Chinese buying as of yet as the trade awaits additional Chinese buying of US beans. Current ongoings in the US bean market is the battle between decent domestic demand and dire export demand. Longer term stance may result in a cap on bean prices unless export demand can be cranked up. Matif rapeseed Feb-23 settled up €3.00 on yesterday at €640.25/t.

London Wheat tenders below:

ICE issuers and receivers

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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© 2022 ADM Investor Services International Limited

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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