llamedos
New Member
Early this morning sterling fell against a basket of international currencies. At 4:30am (according to Reuters) the pound fell to £1=€1.2033, the lowest level since late March 2014. This is a drop of 7% from yesterday’s close of £1=€1.2873. Against the dollar, sterling fell 9% to £1=$1.32871 at the same time, the lowest level seen since 1985.
Since the early hours of this morning, the sterling has eased somewhat from the overnight lows but remains weak compared with yesterday’s close.
Currency volatility has been a trend throughout most of this season and one of the main factors driving markets (in the absence of significant shifts in market fundamentals). You can readTuesday’s Grain Market Daily here for a rough guide on the impact of currency on global prices for the UK.
It is likely that this volatility will continue in the short-medium term and therefore the importance of keeping an eye on markets has never been so essential. Grain Market Daily can help you make informed decisions by giving updates on daily market movers.
Macros’ and rain drive grain futures
International grain and oilseed futures prices fell yesterday. Prices were weighed by concerns about the macroeconomic environment and currency volatility, as well as the arrival of further rain in the US maize and soyabean belt. Good soil moisture is particularly important for maize crops as they are now reaching pollination.
UK feed wheat futures (Nov-16) closed at £115.20/t yesterday, down £1.30/t from Wednesday’s close (22 June) and the lowest closing price for the contract since 3 March. Dec-16 Paris milling wheat futures hit a new contract low of €164/t yesterday, down €2.25/t from Wednesday.
Further declines have been seen overnight in the Chicago futures markets, with mixed changes so far today (11am BST, 24/06/16) in Paris futures, likely following reductions to French cereal crop condition ratings. However, for UK feed wheat futures, the pressure from international markets has so far been more than offset by depreciation in sterling against both the euro and US dollar. As at 11am today, UK feed wheat futures (Nov-16) were trading around £119/t.
Source AHDB Grain Market Daily.
Since the early hours of this morning, the sterling has eased somewhat from the overnight lows but remains weak compared with yesterday’s close.
Currency volatility has been a trend throughout most of this season and one of the main factors driving markets (in the absence of significant shifts in market fundamentals). You can readTuesday’s Grain Market Daily here for a rough guide on the impact of currency on global prices for the UK.
It is likely that this volatility will continue in the short-medium term and therefore the importance of keeping an eye on markets has never been so essential. Grain Market Daily can help you make informed decisions by giving updates on daily market movers.
Macros’ and rain drive grain futures
International grain and oilseed futures prices fell yesterday. Prices were weighed by concerns about the macroeconomic environment and currency volatility, as well as the arrival of further rain in the US maize and soyabean belt. Good soil moisture is particularly important for maize crops as they are now reaching pollination.
UK feed wheat futures (Nov-16) closed at £115.20/t yesterday, down £1.30/t from Wednesday’s close (22 June) and the lowest closing price for the contract since 3 March. Dec-16 Paris milling wheat futures hit a new contract low of €164/t yesterday, down €2.25/t from Wednesday.
Further declines have been seen overnight in the Chicago futures markets, with mixed changes so far today (11am BST, 24/06/16) in Paris futures, likely following reductions to French cereal crop condition ratings. However, for UK feed wheat futures, the pressure from international markets has so far been more than offset by depreciation in sterling against both the euro and US dollar. As at 11am today, UK feed wheat futures (Nov-16) were trading around £119/t.
Source AHDB Grain Market Daily.
