Written Commentary
Ag Market View for July 26.24
July 26, 2024
Source: Future Source
Gains were made across both corn and wheat futures last week, with Russian, North American and Canadian setbacks providing support. Today we were mostly lower in the US, and mixed in the European trade.
Crude oil was sold off quite dramatically in today’s trade, trading on 2 ½ month lows, reportedly on the back of the UN’s call for “code red for humanity” amongst other factors. This led to weakness in the biofuel related agricultural markets with both corn and soyoil trading lower.
SoveEcon, last week, reduced their Russian wheat production estimate by 5.9Mmt last week to 76.4Mmt. As of 6 August, 47Mmt of Russian wheat had been harvested.
In Brazil, consultancy AgRural reports that after drought and frosts, the country’s farmers are expected to harvest 56Mmt of second crop corn, circa 19Mmt lower than last season.
Rain has continued to delay harvest in parts of Europe, with over a third of the French crop still in the field comparted to only 3% left to harvest this time last year. Showers continue to slow the UK harvest, however there is some market talk that current quality and quantity is likely to be in line with the 5 year average, more will become known once the dry weather allows progress.
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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