Currencies
Currency has remained static week on week, with a perceived weakness to the $ being the reason rather than anything fundamental shifting with the £.
Wheat
Wheat markets have continued to move downwards post WASDE which was seen as bearish to the market. The ever increasing volumes available from the Black Sea and general downward recessionary demands mean that currently there is little on the horizon to switch this trend.
Russia continues to be the cheapest source of global wheat, despite a recent increase in insurance premiums for Russian vessels. Being as grain is their main form of income stream currently, they would be reluctant to pass on this additional premium to the market and risk drying up their export potential.
Looking closer to home, on paper the UK is competitive for export but with Europe not able to export to their normal homes because of cheap Black Sea grain, there is no demand into those homes for the UK, meaning the whole market has become almost stagnant. The concern now is that come the spring, futures stores will need to start to come to the market to sell wheat in order to make space for new crop. This could make the old crop/new crop spread very technical but for the opposite reasons to we are used to seeing. Could old crop become a discount to new crop?
Soya
Soya prices despite the overall sentiment that there is more than sufficient supply, seems reluctant to come down. Some of this is down to nearby logistics issues for the UK with vessel delays.
The WASDE report cut the Argentinian crop by 4 MlnT, down to 45.5 MlnT, down from the original 52 MlnT projection, but this is more than offset by the Brazilian crop which is currently at 151 MlnT, 25 MlnT up on last season!
Organic
Organic prices seem to have found a level now albeit, not really trading. Again, shippers and compounders have huge stocks because of the downturn we have already seen in volume which is making pricing almost a paper exercise. The caveat to prices moving lower is that material in the stores carries a cost and there will be a limit to how low shippers are prepared to go to move stock before it makes more sense to hold it.
And Finally…
A proper 2 Legged Fox
We all know that foxes have four legs, although in the farming community, a `2 legged fox’ would be someone who comes and steals from the farm, however, an genuine 2 legged fox has become a bit of an internet sensation.
The fox was filmed in Derbyshire nimbly walking across someone’s garden with remarkable dexterity.
Opinion seems divided as to whether the animal was born like this or suffered an accident beyond birth, but whatever it was, you have to admire its dexterity and determination to survive.
Mike Dilger, a BBC wildlife reporter and presenter stated that he believed that it was born with a genetic disorder because " because it is so adept. I mean, its poise and its balance, its control, it's astonishing."
Regards,
Kay Johnson & Martin Humphrey
