Firstly we would like to wish everyone a Happy and healthy New Year
Main feeling in the trade has been the relief that a trade deal has been reached and we are unlikely to see tariffs on key ingredients.
There is disappointment however that the pound hasn’t firmed as much as anticipated, with predictions we would reach 1.40 against the dollar, but this has not materialised.
Markets have started the New Year as they finished before the Christmas. Funds continue to be very active as they keep buying into this market.
Russia have imposed an export ban on wheat which will take affect from February. This in turn has made EU prices firm.
Export restrictions have also been placed on maize in Argentina.
Dry weather in Argentina and Southern Brazil is causing concern to the soya and maize crops. The Argentinian crop is reported that it could be reduced to 45 million tonnes, down from 55 million tonnes.
Early Indications from Brazil suggest yields are down considerably.
The strike in Argentina should be resolved by next week, but there is going to be a back log of vessels, with 140 to 160 vessels affected. This is causing some logistical issues on soya in some ports.
Unfortunately Matt who used to look after the straights has left for pastures new and a fresh challenge. We would like to thank him for what he has done and wish him all the best for the future.
Please speak to Sandra, Andrew (Taffy) or your feed specialist in the interim period.