Written Commentary
London Wheat Report
Russian wheat export prices for the new harvest have declined significantly from a week ago as concern over the impact of bad weather on the grain harvest has subsided, analysts said. The price of 12.5% protein Russian new crop wheat scheduled free-on-board (FOB) with delivery in July was $234 per metric ton at the end of last week, $8 lower than the price of this class of old crop wheat a week earlier.
Farmers in southern regions of Ukraine have started the 2024 grain harvest, the country’s acting agriculture minister Taras Vysotskiy said on Saturday.
Globally, Chicago wheat was trading down 20 cents at the time of writing, with downward harvest pressure blamed as more than favourable rapidly advancing wheat harvests ongoing in the US. Similar story in the French market with Matif Sep and Dec both trading down over 7 Euros on the close.
Markets were under pressure again today to start the week. London saw a small period in the green before finding old form and heading lower. Nov traded down as low as £197.90, down £4.65 which is where it was on the close. May5 had a similar day with £4.55 coming off Friday’s price at its lowest. Volume was more impressive than it has been of late with over 750 odd lots trading across the curve, split 491/247 between Nov 4 and May 5 respectively. Jul 4 enters the tender period next Monday and we saw 5 lots trading on screen @ £170.
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