Market Report: October 2016

FX Monthly movement

  • US$/£1.30 down from 1.32
  • US$/€1.11 unchanged
  • £/€ 1.16 down from 1.18

Brexit continues to be the over-riding sentiment impacting Sterling exchange rates at present. Will there be further interest cuts, what about more QE? Will it be a hard Brexit, impacting the financial services sector, or a softer more accommodating agreement?

Whatever, as concerns continue that the UK Government is struggling to establish a clear way forward means Sterling drifts lower still, raising fears of inflation, but also increasing overseas order books. The Euro is overshadowed by fears surrounding Deutsche Bank and their $14 billion fine, which almost equals their market capitalisation. There is fear of contagion through the Eurozone banking sector.  Whilst the US$ reacts to the looming presidential election and the ‘lesser of two evils’ although with an apparent ‘win’ for Hillary, nerves are perhaps a little less raw.

General news

We are broadly convinced now that the majority of seeds are trading at or near the bottom of their ranges. All seeds have the potential to increase, but with latent demand, good harvests and economic re balancing, they continue to drift. It seems however there is limited risk in covering forward, and we have seen some consumers push out cover to 2018 already at these levels.

We will be at SIAL later this month, and hope to meet with some of you there.

We see some firmness on the horizon for Chia, where the crop is significantly down on the previous bumper years. We actually sense the possibility that demand now exceeds supply, and this will hit prices in 2017.

Finally, China goes on holiday this weekend for 1 week.

In this report:

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

Download the full report (PDF)

1610-Unicorn Market Report-October 2016 (0.2 MiB, 193 downloads)

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