Currencies
The £ continues to suffer as the expectation that inflation will fall in Europe during this quarter helps to strengthen the €.
Although UK inflation is beginning to look like it is coming more under control, the fact that this signals the end of interest rate hikes potentially by Q4, is seen as a negative for currency traders.
Wheat
UK May futures prices are now at their lowest levels since the contract started, this despite the ongoing negotiations over the grain corridor extension. The market is now almost signalling that it sees these periods of negotiations as crying wolf as Russia need to keep their few options for a revenue stream open so are unlikely to cut off the corridor.
With futures now having broken through the £225 level, we are looking at a next key level of support at £210 and this is being echoed globally as wheat markets continue to struggle to break any downward trends. The more than adequate global wheat stocks and a seemingly healthy looking new crop on the horizon are keeping wheat prices on the defensive. It is still a possibility that we see old crop at a discount closer to harvest in an effort to clear sheds.
Soya
The flow of sunflower for the coming summer looks to be easing now with shippers making offers available from Black Sea, moving away from Argentinian supply. This should in theory help with potential gaps in supply due to shipping delays, but it is unlikely in these falling markets that strategic stock will be held so we could still see periods of pricing spikes.
Soya this week seems to have finally broken lower after rallying last week again on the news that the Argentinian crop will now be circa 25 MlnT, (a huge move down from the original figure of 48 MlnT). The overall Supply & Demand is still more than in balance and plantings projections for 23/24 are set to be the highest on record.
Organic
Organic prices continue to drop on old crop as the market struggles to find any real demand. This should switch as we get further out of the winter period and people look to take on summer cover.
For new crop though (October onwards traditionally for organic), prices are now starting to hit triggers against conventional which could signal a move upwards. It could work for producers to look at taking out a 12 month feed contract to take some of the benefit of this new crop pricing to see them through the rest of old crop. Speak to your sales Specialist if this is something you wish to look at.
And Finally…
Just what any long distance relationship needs – a remote kissing device!
An now here is another thing you really did not know that you needed – a remote kissing device. It is designed for those who are away from their loved ones, and need to share a kiss.
The idea came from Jiang Zhongli, who was in a relationship with his girlfriend who lived far away. He invented and with the help of other researchers at the Changzhou Vocational Institute of Mechatronic Technology in East China’s Jiangsu Province patented a remote `kissing device’.
The device has silicone lips which are `fleshy’, which is connected to a smartphone. Sensors replicate the pressure, movement and temperature of a kisser’s lips, as well as relaying the sounds of the originating kiss!
If you think that this could be for you, here is the device in action:
https://www.youtube.com/watch?v=b0Io6Hsd6Ww&feature=youtu.be
Although somehow, we suspect that this may struggle to catch on in Europe!
Regards,
Kay Johnson & Martin Humphrey
