Currencies
The biggest news this week for currency has of course been the US election. Ahead of election day the $ had rallied with investors looking for historical safe havens to place funds however, as the week progressed and the result was still unknown and faces being contested, the $ has lost strength making the £ now back above 1.31 against it. As it stands, it looks clear that Trump will launch legal proceedings for fraud against key states which he has lost which will further delay the official result. In Europe, negotiations over Brexit have been progressing this week with a key announcement expected anytime now, possibly surrounding the fishing rights and legal text around any agreement. The £ has remained relatively range bound against the Euro with little to give direction until an announcement is made. News that the UK will extend the furlough scheme until March ‘21 has boosted the FTSE as it is seen as a major support for UK businesses.
Wheat
Wheat markets have continued to rally this week, supported by the dryness in Russia and continued global demand. There had been a brief dip in the US markets earlier in the week with profit taking ahead of the election. The first US planting report for this season put crops at 41% good/excellent, compared with 56% this time last year. China have switched this week and become sellers of wheat, taking the opportunity to bank profit from consumers who have been looking to switch out of expensive corn and back into wheat for animal feed consumption. They will need to re-enter the market at some point to replace this tonnage. Looking closer to home, reports continue to suggest that in the UK there has been good planting this autumn, but with the new crop already at a discount to old crop and that old crop price remaining at a discount to imports, it is unclear at present, if the new crop price will move lower at all as the season progresses.
Soya
Soya prices have seen another strong week with Brazil now buying US beans as was expected to happen to compensate for their late planting. Beans have also been supported by a rally in soya oil which has come from issues with palm oil inventories. Malaysia has reported a 9.8% drop for this month which puts their stocks at the lowest since June 2017. China has slowed its buying with the last official sale reported on 15th October and US exports down 32% in the past 4 weeks compared to the previous 4 weeks. The USDA has reported that Chinese imports were up 2.6 MlnT this year so the question is, are they full up or simply taking a break?
And Finally…
Moving display of 200 life size soldiers is erected on the lawn at Blenheim Palace to mark Remembrance Sunday
The art installation named ‘Standing with Giants’ is made from recycled materials and was created by local artist Dan Barton. The haunting silhouettes stand amongst 75 poppy wreaths and will be on display for two weeks.
Blenheim Palace Operations Director said, ‘with many planned parades cancelled this year due to Covid restrictions, we wanted to do something which would still mark the occasion and raise awareness of the ongoing need to support our veterans and the amazing work being carried out by the Royal British Legion’.
The palace itself has a long standing affiliation with the British Military having been used as a rehabilitation centre for returning soldiers during WW1 as well as being the birth place and final resting place for Winston Churchill.
Blenheim Palace gardens will remain open during the lockdown but on a pre booking system and donations for the Royal British Legion can be made via a QR code. You can donate here.
Regards,
Kay Johnson & Martin Humphrey
