Written Commentary
Source: Future Source
Ag markets in the US and Europe cooled off today following the impressive gains from last week. Increased rainfall in the US Midwest has improved crop prospects for Maize and yesterday’s USDA crop progress report reported corn conditions unchanged, with 60% of the crop rated good/excellent. Slow US export demand increased the discount of Chicago wheat to Paris wheat, capping gains. Chicago Dec-21 wheat was trading a cent down and Kansas Dec-21 was trading a couple of cents up at the time of writing. Today is the last day of the old crop marketing year. USDA will be adding up the ending stocks and will report the final stocks on Sept 30. There is some concern for US supply disruption as Hurricane Ida hit key states across the Gulf of Mexico. Elevators owned by Cargill, ADM and Bungee have been damaged with the extent of the damage as yet to be ascertained.
Matif Dec-21 futures settled down €1.50/t on yesterday at €245.25/t. Paris milling wheat continues to be supported by strong export demand. London wheat futures Nov-21 went into bank holiday £2.75/t higher, Friday-Friday, at £195.75/t. They were down today, settling £1.50/t lower on Friday’s settlement at £194.25. Wheat markets are likely to remain supported to some degree by the tightening global outlook.
Tenders are continuing. Taiwan bought 65,000t of Argentinian corn from Viterra. Iran has bought between 180,000t – 240.000t of Russian wheat over the last two weeks. Egyptian wheat purchases are running 31% behind last year’s pace to date. Japan has issued its weekly tender to buy 194,000t of US wheat for October – December delivery. Turkey’s state backed grain buyer has announced a fresh tender for 245,000t of feed barley for the second half of 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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