Currencies
The £ reached 2 month highs this week after news that the Bank of England have raised interest rates by 0.5% which was seen as positive news for the UK, however with a caveat warning that the UK will be heading into recession this year, currency is likely to fall further in the long run.
Wheat
Wheat markets have looked relatively flat this week in comparison to previous weeks. UK harvest is now well under way with some areas 50% cut now for wheat. Bushel weights at the moment are looking good at 80+ as an average but protein is expected to be slightly lower because of the early start.
In terms of export potential, despite prices not really falling, UK wheat is now competitive to export to Sapin and Portugal, because of the rate which the European market has firmed. Funds are buying heavily back into grain markets which would suggest a longer term bullish view. The first grain vessel to be inspected in Turkish waters left Odessa this week but, rather than being an addition to the global S&D figures, it would now appear that volume is merely going to replace that lost in Europe due to the excessive heat.
Soya
Soya has rallied this past week with excessive heat threatening the pod development of the plants in North America. There will be circa 8 MlnT higher demand from China this next year as they look to replenish their hog heard from Swine flu and downturn in demand during Covid although longer term, if the record Brazilian crop being talked about comes off, we could see better prices for the summer but this winter is beginning to turn and look more bullish.
The EU has dropped their sunflower projections this week down to 10.3 MlnT, from closer to 11 MlnT as expected with the uncertainty over exactly what will come out of the Black Sea areas.
Organic
Organic prices seem relatively stable although offers at origin are hard to come by still. This is more of a case of not knowing where to value the crop at rather than it not being available, but it does not help a market sector which is desperate to know their long term costs through this coming winter.
There have been rumours of issues with Indian organic certifications again this week but that does not seen to have had too much impact on price as most suppliers were holding long stocks of old crop because of the downturn in demand during the second half of this year.
And Finally…
I am sure most people are struggling with the heat that we have enjoyed over the last month. Spare a thought for some animals that also find the heat challenging, but if you are worried about your pampered pooch, then a solution is at hand.
From the Japanese, the originators of the heated lavatory seat, we have the opportunity to provide cooling for your dog:
Or for your moggie too:
The product was devised by Rei Uzawa who is president of a maternity clothing business called Sweet Mummy. The Tokyo based clothes manufacturer collaborated with a vet to create a mesh vest embedded with a battery operated fan.
The vest retails for 9,900 yen (circa £60), and comes in 5 size.
Regards,
Kay Johnson & Martin Humphrey
