Currencies
Currency remains stable at $ 1.42 and € 1.16 this week with little news to give reason for it to move in any direction. The € has been struggling to find support with the ECB meeting due to take place shortly which will set out the post Covid recovery plans for the bloc countries. The $ has been struggling with reports suggesting a skills miss match between applicants and vacancies is now growing in the jobs market. The uncertainty over the 21st June ‘Freedom’ date could mean that we lose some value in the £ going into next week.
Wheat
Wheat markets feel as though they have settled slightly from the huge daily swings which we have been seeing. The USDA report this week upped world wheat stocks for 21/22 slightly to 298.8 MLnT, mostly on the back of revised production figures for Europe and Russia where weather now looks near perfect. There are still concerns over dryness in parts of the US and the reduction in the corn crop continues to ripple through all the grain markets.
In the UK old crop prices are beginning to slowly creep up as is typical for this time of year while farmers take stock of what it is exactly they do have left in the back of the sheds. The next 3 or 4 months while we work out exactly what our carryout will be and what the UK wheat yield is could mean we see some short term volatility. Revised figures this week put the UK harvest at circa 15 Mlnt, which is still short of the 16 MlnT needed if we are to avoid having to rely on imports.
The demand for barley in the export market has also meant the differential between the two has been driven down to around £11 per tonne, back from the £20-25 it was when plantings were taking place. This will mean that barley will likely be replaced in animal feed diets again in favour of wheat, to a degree, placing more pressure on those wheat prices.
Soya
Soya prices have moved back slightly this week after the USDA report increased end stocks for 2021 by reducing processing demand figures. Soya will still be one to watch the closer we get to the critical August growing period, as 23% of the US soya crop is now considered to be in a drought zone with crop ratings currently at 67% versus the 5 year average of 79%. China’s appetite for soya seems to be never ending with figures released this week showing that they imported 64 MlnT this season, up 10% on this time last year. It would appear that their plans to expand their hog numbers during 2021 are still very much in motion.
And Finally…
5 Old Men, Alan and his dog… the Sea Shanty group set to take on their biggest gig to date for G7 leaders.
The group made up of a carpenter, and IT analyst and a Parish Council clerk are due to serenade the G7 leaders on a Cornish beach near Carbis Bay but seemed relaxed about the grand occasion. The group have said any money raised from the event will be donated to their local childrens hospice.
The event will be a beach BBQ event, followed by a bonfire with marshmallows in a bid to show the real Cornwall to the world leaders. The oldest member of the group at 73 said they were’ not nervous and really looking forward to it’.
The band are more used to holding a weekly slot at their local pub but welcome the chance to share their much beloved sea shanty favourites with a wider audience.
Regards,
Kay Johnson & Martin Humphrey
