Currency
£/$ 1.3126
£/€ 1.1045

The £ has now moved past its 30 day moving average against the $ as the $ hit a two year low this week ahead of the Fed’s Monetary Policy meeting this week, which is expected to put forward a $1 trillion relief bill.  Some recovery is expected during the course of the week with results from US firms Amazon and Apple due.  We have seen very little movement against the € with little fresh news.  Brexit and economic recovery are going to remain key drivers now moving forward. 

Wheat
Spot £172
Nov 20 £174

US wheat prices have held firm this week with the weakness in the $ making it look good value to outside buyers, mainly China.  The French wheat futures market, the Matif has eased in order to compete with Black Sea origin material despite slow farm sales.  Many French farmers are reluctant to sell anything forward until harvest is complete and they know what they have in the barn.  French harvest is progressing at a good pace, and ratings have been revised upwards by 2% as more is understood around the quality and yield.  The UK is following the global pattern pending any real domestic harvest news.  We are still in that `in between’ stage and need information on the quality of the UK crop now to really drive any change in the market.  The Global Grains Committee cut the forecasted wheat tonnage by 5.6 MlnT this week to 762 MlnT, however interestingly, this is still 12.1 MlnT above predicted demand.

Soya
Spot £310
Nov 20 £314

The same stories are still floating around the markets this week with continued questions over the state of US/China relations, and its impact on US agricultural exports, but particularly soya.  It is likely that this consideration has already been factored into prices.  The lack of any new crop farm sales globally at present is making the market illiquid.  There has been parcels bought this week by China of US material however, as Brazil is now sold out of old crop and ahead on sales of new crop, it is likely this has been more out of necessity than choice.  Chinese stocks are now at their highest since November 2018 so how much more buying will need to be done is now in question. 

Weather in the US continues to look favourable for bean development, improving crop ratings to 72% good/excellent, ahead of the 69% average.  Looking at Brazil, reports this week have put 2020/2021 bean production at a record 129 MlnT.

And Finally…
A four-year-old boy has been given a special send off after spending 28 months in Alder Hey Children’s Hospital.

Hari Jones from Caernarfon has Myotublar Myopathy which means the muscles he uses to breathe and swallow do not work, however after months of medical procedures, he has now been allowed home and was given a special Police guard of honour as he left.  The family were then escorted home by a Police biker and roads unit with blue lights.  The Merseyside unit had previously surprised Hari at Christmas with his own police uniform.

Check the article by clicking here. 

Children with Hari’s condition are not expected to survive past their first year and he will live on life support 24/7.  The family have been having a specially adapted home built during Hari’s stay in hospital so that he can have as normal life as possible outside of a hospital environment. 

Regards,

Kay Johnson & Martin Humphrey