Market Report: November 2016

FX Monthly movement

  • US$/£1.21 down from 1.31
  • US$/€1.09 down from 1.11
  • £/€1.11 down from 1.16

Sterling down 4% again this past month against both € and $, is for our UK clients masking some favourable market movements. The Eurozone is bolstered by the roaring economy of Germany, that continues to support the zone, whilst the divergence from other countries challenges ECB policy and complicates the EU way forward.

The US is in a healthy position leading to more optimism for interest rate hikes in December. This is of course another cause for concern as the UK economy is more likely to be heading for a rate cut, meaning additional divergence in the economic area. Otherwise presidential elections, perhaps now a foregone conclusion and Brexit negotiations provide plenty of room for speculation and rumour.

General news

We re-iterate last month’s statement that seeds are now trading at pretty much the bottom of their natural ranges and in some cases, below a comfortable cost production. It means pressure is building for a hard correction at some point. Why is this happening? Well, buyers are waiting for the bottom, and the ‘perfect’ bargain, demand for some seeds has declined, over supply and emerging origins adds to the picture. What does it mean? Price pressure pushes importers towards lesser certified processors, processors look for poorer quality raw materials, risk increases in the supply chain both in performance and quality.

In this report:

  • Pumpkinseed kernels
  • Sunflower seed kernels
  • Linseed
  • Sesame seed
  • Hulled millet
  • Poppy seed

Download the full report (PDF)

1611-Unicorn Market Report-November 2016 (0.2 MiB, 188 downloads)

Archive reports can be found and downloaded from our Downloads page