Market Opportunity - WHEAT

• WHEAT (ticker: ZW_U) the wheat market is anticipated to witness a significant price rise, presenting a favorable moment for investors. Several factors, including an export ban by India in 2022 to stabilize prices and the subsequent accumulation of sufficient stocks, have set the stage for this anticipated price surge.
• Notably, India has recently announced its decision to allow limited wheat and rice exports to specific destinations. In response to requests from various countries, including Indonesia, Senegal, Gambia, and Nepal, India has granted approvals for exports from the 23/24 crop, effective immediately. These developments indicate a potential increase in demand and subsequent price appreciation in the wheat market.
• Rumors of Algeria's procurement: Reports from European traders suggest that Algeria may have purchased around 683k MT of wheat through an OAIC tender on Monday. The majority of the purchased wheat is believed to originate from Russia. If the origin of the wheat is European, shipment is anticipated to occur in August. However, if it is sourced from North or South America, the shipment is expected to be a month earlier. These procurement activities indicate potential increased demand and can exert upward pressure on prices in the wheat market.
• Decline in US wheat shipments: The delayed Export Inspections report revealed that 237,820 MT of US wheat was shipped during the week ending on 6/15. This figure reflects a decrease of 10k MT from the previous week and a decline of 100k MT compared to the same week last year. The lower volume of wheat shipments indicates potential tightening in supply or reduced demand, which can have implications for market prices. The decreased season's total wheat shipments, reaching 556k MT compared to 987k MT last year, further reinforces this trend of lower overall wheat exports. These shipment figures may contribute to market speculation and potentially impact wheat prices in the coming period.
• Closing statement: the wheat market holds potential for a price surge. Factors such as India's export policy changes, Algeria's procurement rumors, and the decline in US wheat shipments indicate a tightening supply and increased demand, setting the stage for possible price appreciation. This presents a favorable opportunity for investors seeking to capitalize on the potential rise in wheat prices.

• Calculations for exchange rate used as of 13:25 (GMT+1) 17/05/2023
• Lot Size: 1.00 = 100 Shares
• This is not a financial advice and all investors should be aware of the fact that they are responsible for any profits or losses.

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