- Location
- Lincolnshire
- The ECB announcements yesterday were the main driver for market movement as Euro strengthened considerably against a basket of currencies. Chicago wheat strengthened on the weaker USD as did LIFFE on Sterling weakness while Matif came lower on Eur strength.
- Reduction in overnight deposit rate from -0.2% to -0.3%. Seen as bullish Eur as an incentive for banks to lend money.
- Current E60bn/month QE will continue into March17. Expectations were for an increase.
- Interest rate remains at a record low 0.05%.
- ECB continues to try to maintain inflation at/below 2%.
- Reduction in overnight deposit rate from -0.2% to -0.3%. Seen as bullish Eur as an incentive for banks to lend money.
- Last week saw the largest export week of the season from the EU with 1m mt of soft wheat licenses issued, albeit the bloc needed it and remains 24% down YoY @ 9.75m mt with all wheat down 20%.
- NOAA has stated that one of the main monthly indicators for El Nino is at a level not seen since 1997. El Nino strengthening (warming of the Eastern Pacific) tends to increase rains in SAmerica and increase dryness in SAsia.
- US Balance of Trade and Unemployment figures are released today @ 1330GMT. Japanese GDP Growth Rate data is released on Monday @ 2350GMT.
- The US continues to see dryness and normal temps into next week. N Eur stays warm and wet in the 5 and 10-day. The FSU turns dryer in the 5-day with well above avg temps in Russia. S Brazil stays wet with Argentina looking varied in the 5-day. Aus looks wetter in the 10-day.
Last Trade Settle:
London Jan '16 Settle £112.90/mt - up £0.15 from previous close
London May '16 Settle £118.25/mt – up £1.00 from previous close
Paris Dec '15 Settle E174.00/mt – down E2.75 from previous close
Paris May '16 Settle E183.5mt - down E1.00 from previous close
Currency this morning:
GBP EUR 1.3890
EUR GBP 0.7195
EUR USD 1.0874
GBP USD 1.5113