Jan 09, 2020

Ingredients Market Report: January 2020

2020-02-06T11:11:42+00:00January 9th, 2020|Market reports|

The New Year has injected huge uncertainty into the FX markets, with President Trump’s actions in the Gulf, and any subsequent fall out. In addition the race to complete ideally a ‘Free Trade’ Brexit by 31st December 2020, will put some pressure on Sterling until the mechanism is clear. The pending March budget in the UK will also impact Sterling, as the end to austerity will have an impact on government borrowing etc …

Dec 03, 2019

Ingredients Market Report: December 2019

2020-01-10T10:35:14+00:00December 3rd, 2019|Market reports|

Lots of volatility on markets this period, all caused by sudden realization of crop performance, increased demand, weather and specification challenges, Generally all bad news with tightening supply and firming prices. There are one or two exceptions, but that’s all. Organic supply is becoming tricky too, both from China and elsewhere. In China many suppliers are opting out due to the tough EU regulations imposed unexpectedly last January. We hear of pesticide issues from North America, and supply problem from Eastern Europe. Everything looks like a worsening supply situation and higher prices. But at least the product is likely to be Organic!

Nov 01, 2019

Ingredients Market Report: November 2019

2019-12-04T03:18:21+00:00November 1st, 2019|Market reports|

Volatility is the name of the game; Brexit, trade wars, US global policing, dropping US$ interest rates, pending EU recession all impact currency, with no clear direction for any. Essentially it is best to convert to local currency and forget these days.

Oct 01, 2019

Ingredients Market Report: October 2019

2019-10-31T10:05:28+00:00October 1st, 2019|Market reports|

Political uncertainty is clearly evident as a significant impact on currencies at present. The continued attempts to impeach Mr Trump, and the fear of further rate cuts and continued trade wars impact on the US$. Sterling struggles to find direction for obvious reasons, and as we approach month end with no clear resolution, one can only assume the markets will start to move it in one direction. If a deal is struck £/$ 1.30 is likely until then volatility will rule. Whilst in the EU, recession threatens, and poor economic data continues. It is hard to find reason for the Euro to strengthen at this time. Division is clear within the ECB as recent resignations have indicated.

Sep 01, 2019

Ingredients Market Report: September 2019

2019-10-31T10:02:46+00:00September 1st, 2019|Market reports|

FX has been remarkable stable when looked over the month, mainly due to the holiday period, and surrounding uncertainty that no one can predict the outcome. All the issues remain; Brexit, China-USA trade wars, global recession or not! Sterling has the potential to gain/lose 15 cents to the pound depending on the negotiations. The US$ which could weaken if trade wars develop, is potentially more likely to strengthen if global recession occurs due to the trade issues as investors take haven in the safest currency.

Aug 01, 2019

Ingredients Market Report: August 2019

2019-08-30T13:30:31+00:00August 1st, 2019|Market reports|

Well, we have a new UK Prime Minister, and Brexit is back on the agenda and at present it is hard to see how we will avoid leaving the EU on 31st October, come what may. Sterling is obviously taking a hit for this reason, and some forecasters are anticipating parity on the US$ and indeed the Euro. This will add 10-20% to all raw material prices, regardless of market savings.

Jul 01, 2019

Ingredients Market Report: July 2019

2019-08-30T11:29:43+00:00July 1st, 2019|Market reports|

The lowest month for market info. We are just before the earliest new crops, and a long way from last harvest. Additionally, summer holidays are around the corner and on people’s minds. In UK generally planning for a possible eventual Brexit is impossible too, and global uncertainty that impacts on FX rates and thus prices are unpredictable.

Jun 01, 2019

Ingredients Market Report: June 2019

2019-08-30T12:11:32+00:00June 1st, 2019|Market reports|

Sterling is certainly suffering from Brexit and political uncertainty now, having experienced its worst month for a couple of years. The impact on prices is significant. Otherwise, US trade policy, and escalating trade wars and challenging relationships impacts global currency markets. Additionally, in the US, low inflation and consumer confidence tends to point to the next interest rate move being a cut, perhaps against the preferred direction of the policy makers.

May 01, 2019

Ingredients Market Report: May 2019

2019-08-30T12:19:26+00:00May 1st, 2019|Market reports|

In between seasons now, with the usual market adjustments, stock liquidations, etc. This leads to strong variations in prices, but also in quality of material being supplied, BBE dates etc. Additionally, UK clients are managing their ‘Brexit’ inventory situation, and this is having complications in the market place.