Written Commentary
Source: Future Source
Wheat prices overnight were down on both US and European markets. Weakness in US corn and soybean pushed US wheat lower before regaining in the second half of the day. Prices have been weaker this week as markets assess the implication of the damage to export facilities in the US caused by Hurricane Ida. ADM and Bunge elevators remain without power at Louisiana port terminals with no confirmed date for operations to restart. ADM has advised that no significant structural damage to elevator infrastructure has been found. The trade is expecting further reductions to both US and Canadian crops in next week’s USDA report, but like corn and beans, markets are struggling to hold support. Chicago Dec-21 was up 6 cents and Kansas Dec-21 was up 6 cents at the time of writing.
Turkey bought 300,000t of wheat with purchases still provisional with some purchase quantities coming from domestic warehouses and some imported. Jordan has reported 2 offers in tender to buy 120,000t of barley. Purchase has not been reported as of yet. Algeria ramped up the total bought at Tuesday’s tender to almost 500,000t, taking their Jul-Oct purchases to 2Mmt. Matif milling wheat Dec-21 settled up €1.50/t on yesterday at €244.25/t. London Nov-21 settled a fraction down on yesterday at £191.40. Nov-21 Black Sea cash values remain nominal, Russian export tax is rising around $5 per week and the firming Ruble is raising Russian replacement costs.
In today’s export sales, the US has sold 2.1Mmt of beans for new crop year, a reminder that export demand is still alive as the damage at the Gulf is more a hiccup in shipments than a game changer. Soybeans Nov-21 were up 6 cents at the time of writing. US oilseeds support also helped Matif rapeseed to climb, Nov-21 settled up €10.00/t on yesterday at €574.25/t. The Nov-21 contract is €187.80/t ahead of the average of the previous 5 November contracts, as of 1st September.
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.
© 2024 ADM Investor Services International Limited.
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