Currencies
Currency surprisingly remained unchanged week on week despite the report published showing that the UK is expected to have the worst performing economy in G7.
Reassuringly, our Government also informs us that the UK economy will be having a shorter recession than everyone else is calculating.
Wheat
Wheat markets saw the first rally since Christmas this week, mostly as a reaction to it being technically ‘over sold’ and spec money looking for a way in. Matif moved lower this week however and is now competitive for export against Black Sea and Russian material, but to secure those sale, it could do with moving cheaper still.
In terms of our UK market, Trade is quiet with even futures only trading around a third of expected volumes. The UK is currently on track to have the largest wheat carryout for 7 years with end stocks or circa 2.25 MlnT (normally expected to be around 1.5 MlnT). This means that despite the current rally, it does not feel right as surely sheds will need to be emptied ready for what is also looking like a good new crop?
There is of course the continued geo-political element to the market and with the 24th February anniversary approaching, there is concern over the long term viability of the grain corridor.
Soya
Soya prices have rallied this week with concern over small pockets of dryness in Argentina but the Brazil harvest has now started and is progressing well so longer term, there is sufficient soya for pipelines.
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 in the demand for organic produce. The lack of organic volume 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…
How did the Japanese Gibbon become pregnant after 2 years in isolation?
Zookeepers at Kujukushima Zoo and Botanical Garden Mori Kirara in Sasebo City , were a little surprised when Momo a lar gibbon, gave birth in February 2021, as she had been isolated for 2 years.
The zookeepers were delighted to reveal the explanation on Instagram this week:
So that is clear then.
For those who do not read Japanese, and are keen to understand the solution. After DNA test of Lar and her offspring, as well as other gibbons in the zoo, the father was established to be Itou, a 34-year-old agile gibbon. Apparently the some of the partition between the two gibbons was cardboard, and found to be perforated with 9 holes of 0.35inches in diameter, and that the gibbons had mated through these holes!
The spoilsport zookeepers have now replaced the cardboard with Steel
It just goes to prove that where there is a will, there is a way….
Regards,
Kay Johnson & Martin Humphrey
