Currencies

The £ made back some ground this week on renewed optimism surrounding Brexit as both sides continued negotiations in Brussels.  There was however resistance to these levels following the announcement of increased measures to control the rising cases of Coronavirus in the UK, along with the realisation that these may well now be in place for 6 months. 

Economic commentators and market makers have concerns over the impact that COVID, and its counter measures will have on the economic recovery.  The level of UK borrowing, which has already reached £173.7 billion in the first 5 months of this financial year, adds further weight to concerns about the UK economy. 

Wheat

Wheat markets have seen another choppy week.  Prices had started the week easing; US prices had come back enough that they again became competitive for export, and plantings across the Northern hemisphere were progressing well. 

It has been reported that in the UK there is already enough acreage planted to match this year’s harvest figures.  The AHDB have revised the UK’s wheat stocks upwards as the import programme continues to gain momentum. 

On Thursday the USDA released revised data, even going as far as amending previous reports, something which is rare, but when it happens, it does wrong foot the market.  This week it pushed all US agricultural markets higher, and both the Matif and Liffe markets followed, causing UK prices to retrace the dip earlier in the week, to the point where a new high for November wheat was achieved of £191. 

This market is difficult to read and is being lead more by political and economical factors, than crop fundamentals, which makes it volatile and this is likely to continue now, certainly for the UK until we reach the end of the winter months, when there may be a clearer solution to both Brexit and COVID. 

Soya

Soya followed a similar pattern to wheat.  The soya complex started the week downwards with harvest pressure leading the markets, however, like wheat, the revised USDA figures turned the market back sharply upwards, meaning prices have ended back up where they were last week. 

Strong Chinese demand and the biggest summer drawdown of 858 billion bushels of stock meant that funds bought heavily.  There is still concern around the continued dryness in South America which offers support at these levels.   

Next week will be interesting now for US sales as China are on holiday until 8th October and it was reported this week that their national stocks are 7.934 MlnT, the highest level since October 2018. 

And Finally…
Hero Rat Magawa is awarded the animal equivalent of the George Cross for sniffing out 39 landmines and other explosive devices in Cambodia

Magawa, a giant African pouched rate has now cleared 141,000 square metres of land since being trained by charity APOCO, which also trains rats to detect tuberculosis in humans. 

He was formally recognised and presented with a miniature PDSA Gold Medal, the animal equivalent to the George Cross.  He is the first rat in the charity’s 77 year history to receive the honour.  This was also seen as a huge honour for his trainers and goes to further highlight the issues surrounding landmines in countries such as Cambodia.

It is estimated that between four and six million landmines were laid in the country between 1975 and 1998 which has caused over 64,000 casualties.  The country also has the highest level of mine amputees per capita in the word, more than 40,000 people. 

Regards,

Kay Johnson & Martin Humphrey