Currency
£/$ 1.2738
£/€ 1.1097

Sterling continues to look range bound this week.  The £ is down against the dollar week on week but up from the lows following yet more COVID infection data from the US.  Against the €, some ground has been lost on the back of economic data which unfortunately suggested the UK economy will not have the V shaped recovery that was hoped for.  Brexit and economic recovery will continue to remain the key drivers.   

Wheat
Spot £171
Nov 20 £172

US wheat prices rallied this week on the back of buying interest from China.  The weather looks a little dry across the main growing regions at the moment but the long-range forecast does show some precipitation.  Looking at Europe, the weather there is also looking slightly dry which has been reflected in the prices this week.  The market appears focussed on the weather story at the moment, more because there is little else to give direction at present, than it being of any real concern.  UK prices have followed the global trend this week for the same reason.  It is still the common opinion that prices will see a break in the new year once the balance sheets calculations are clarified.  Many are of the opinion that if the UK crop is good quality and makes that milling premium, we will still be net importers of some wheat but that has already been accepted and factored into todays prices so it will support the market, but only slightly.  If the quality is bad, then we will have a surplus of feed wheat and this will pressure the market downwards.  Ultimately, we will need to wait until mid to late August to clarify more information on the quality coming through.

Soya
Spot £311
Nov 20 £315

Like most commodities, soya has also been fairly range bound this week.  Funds have reduced their long position of beans and further shortened their position on meal, suggesting that they are comfortable with stock levels globally.  In terms of US beans, Chinese buying will be key going forward in driving the price.  Weather forecasts look favourable for the coming weeks which is important as the beans are made during August.  How the weather picture emerges over the coming weeks will set the tone for the markets yield expectations for November.  Argentinian farmers are only around 50% sold with low crush margins slowing any new farm offers.

And Finally…
Astonishing moment squirrel begs a child for water and then finishes off the bottle!

Proving just how urbanised nature has become, a family were surprised in America to find they were being followed by a squirrel which appeared to be holding its hands out for their water bottle.  When the child handed over the bottle, without hesitation the squirrel lifted the bottle and put its snout in to start gulping the water, after which it then runs off. 

City squirrels are known for their intelligence when it comes to approaching humans and how they have made associations with human products but to be able to appear to communicate their needs is really something. 

Regards,

Kay Johnson & Martin Humphrey