ADMISI London Wheat Report

Another highly volatile day in global Ag commodity prices, however with a slightly weaker basis for wheat prices. Most markets especially corn and beans are extremely overbought and with fund money the main source of support to start the year any sign of weakness could mean a sharp selloff and fast downside correction. In the meantime however the big fundamental story in corn and beans is providing enough support to keep sellers away.

A 1-6 inch rain deficit in Argentina, a USD at the lowest level since April 2018, higher energy prices and surging palm oil prices are all supportive.

Physical markets, at least here in the UK remain quiet with sellers hard to find. However the green light for 2021 barley exports as a result of a Brexit trade deal has meant a flurry of demand from UK ports with barley still a £50+ discount to wheat and attracting strong interest from the EU.

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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.

© 2024 ADM Investor Services International Limited.

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