Currencies
Currency has stayed largely unchanged this week with no real fresh data to drive it in any clear direction. Analysts still believe that now the 1.42 level has been reached against the $ that we will easily now push through the next critical level of 1.43. The increasingly positive post lockdown economic data and the idea of a Scottish referendum diminishing would support that theory.
Wheat
The wheat markets seemed to have temporarily paused their tendency for large one day swings, although they are slowly creeping back up. Large US corn sales this week spilled over into wheat, pulling the whole complex higher. Matif moved higher on the back of a large Saudi tender for new crop material.
It has been reported that the UK are short of approximately 302,000 tonnes of unpurchased wheat during that key late summer transition period. News that the Ensus bioethanol plants has bought forward their switch over to use wheat would seemingly support this shortness in the market. The key question will be whether that short is filled with an early UK harvest or, if we would need to further increase our import programme. Looking ahead to next season as well, the latest figures suggest the UK wheat harvest would produce around 14.6 MlnT, below the 15.98 MlnT needed to balance the books.
Soya
Soya markets have moved down slightly in the week, adjusting the protection which had been built in for the Memorial Day weekend in the US. On the whole though, the market is still being heavily led by corn. There has also been rumblings that around 23% of the US crop is now considered to be in a drought area, something which the market could ill afford if we are to see prices remaining stable. China have been back buying and their stocks now stand at 5.42 MlnT, the highest level since early March. The tightness of these carryout figures and any potential for drops in the US tonnage forecast will continue to give underlying support to the market for some time yet.
And Finally…
A time when pints cost 20p and ladies and children were banned at the bar!
A pub owner has found a time capsule from 1973 buried in the walls of the property as he began renovations. The capsule contained a collection of ha’pennies, old beer mats. It also contained a note which read, ‘To the present owner from a past owner, good luck!’
The current landlord has now displayed the items on the wall of the newly renovated pub for customers to see when they visit. Some of the ha-pennies have been placed in resin in the floors.
Regards,
Kay Johnson & Martin Humphrey
