AGM Blog



Yoda – ‘lucky you are’

Posted by on May 4, 2020 in AGM News | 0 comments

Yoda – ‘lucky you are’

Yoda –‘lucky you are’ The International Monetary Fund is now saying that the World will suffer its worst recession since the Great Depression!  In the USA 16.6 million people have filed for unemployment benefits in the last 3 weeks.  Here in the UK the Office for Budget Responsibility says GDP could fall by 35% in the second quarter of the year.  They are forecasting unemployment rising by more than 2 million to 10 percent of the work force at the same time. Grain markets and currency exchange rates react by the...

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Market Report wc 27th April

Posted by on May 4, 2020 in AGM News | 0 comments

As of Friday evening, the London LIFFE wheat future for November 2020 had gained £5.50/T on the Friday previous. This morning however, the future was valued £2.25/T lower at £165.50/T.   Over in Russia, the Agricultural Ministry stated last week that grain exports would completely cease once the 7 million tonne quota they set for the last quarter of the season was reached. Currently, 3.5 million tonnes has already been shipped and around 1 million tonnes is being loaded for export week. Estimates are therefore...

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Market Report wc 6th April

Posted by on May 4, 2020 in AGM News | 0 comments

Following yet another extremely volatile week, London LIFFE wheat futures are slightly firmer this morning.   Although some may from the peak of £175.25/T, the London LIFFE wheat future for November is valued at £167.00/T this morning, the equivalent of £160.00/T ex-farm for harvest collection.   Feed barley continues to trade at a £30.00/T discount to wheat.   As for old crop values, £155.00/T ex-farm for spot collection feed is indicated this morning, but buyer demand...

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Market Report wc 30th March

Posted by on May 4, 2020 in Market News | 0 comments

The US government and senate agreed to a new “stimulus package” last week in an attempt to reduce the impact of the coronavirus outbreak on the US economy. The package, which totals $2 Trillion, is yet to be approved by congress but is viewed as a step in the right direction. In response, the value of the dollar declined against the value of sterling.  The recent weakness in the dollar is supportive of the value of US priced commodities. This has pressured UK values over the past week. Fluctuations to...

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Market Update

Posted by on Mar 16, 2020 in AGM News | 0 comments

Market Update

I was undecided on writing a report this morning as I suddenly feel highly underqualified to provide you with a market commentary! But below are a few points worth noting. After topping 1.20 against the value of the euro earlier in the year post Brexit, the pound has dropped to 1.09 this morning. Usually, this would greatly benefit UK grain values as a weaker pound usually equates to greater export competitiveness. However, with all financial markets under pressure, the weaker pound has merely acted as “damage control” over the...

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Under Pressure

Posted by on Mar 13, 2020 in AGM News | 0 comments

Under Pressure

‘It’s the terror of knowing what the world is about’ ‘Turned away from it all like a blind man’ ‘Sat on a fence but it don’t work.’ One month on and the selected lines taken from the song Under Pressure by Queen seem to sum up the on-going events in the world at large and those closer to home in the grain trade also. Since we last wrote in February, stock markets around the world have fallen dramatically and News commentators are talking of a 2008 style collapse.  Oil prices this week fell to levels 30...

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Market Update

Posted by on Mar 9, 2020 in AGM News | 0 comments

Market Update

The FTSE 100 has plunged 8.5% this morning as its value is decreased by a staggering £130 billion, a freefall not seen since the 2008 financial crash. UK funds appear to be “preparing for the worst as it follows the global downward trend. The price of oil had already fallen sharply this year as the disease to spread internationally, with demand for fuel expected to decline. Last week, the oil exporting group Opec agreed to cut production in order to support prices. However, the group also wanted non – Opec oil producers such as...

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MARKET UPDATE

Posted by on Mar 2, 2020 in AGM News | 0 comments

MARKET UPDATE

There isn’t too much to report this week as both old and new crop markets remain under pressure. Trade is difficult as the spread of Coronavirus continues to limit global demand in the short term and there are no major weather stories to report of. The value of sterling is still erratic – it initially firmed at the start of the year but has since dropped. The coronavirus outbreak has caused concern surrounding European trade with China, particularly in the manufacturing sector which has subsequently knocked the value of the euro....

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£200.00/T?

Posted by on Feb 26, 2020 in AGM News | 0 comments

£200.00/T?

The latest estimates from the AHDB have forecast this season’s wheat acreage at 1.5 million hectares. If realised, this will be the smallest UK area for almost forty years, since 1981. It is also a 17% decline on the area drilled last season for the bumper 2019 harvest. The above figure accounts for 287,000 hectares of spring wheat, the majority of which is yet to be drilled as the poor weather continues. With such a heavy reliance on a successful spring, it is difficult to estimate total UK wheat production this harvest – we could be...

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Market Update

Posted by on Feb 24, 2020 in AGM News | 0 comments

Market Update

AHDB released a revised version of their Early Bird Planting Survey which takes place each autumn to assess national cropping intentions. To review the report in full, please see: https://ahdb.org.uk/cereals-oilseeds/early-bird-survey The total area forecast to be planted with wheat is 1.5 million hectares – the smallest acreage since 1981. This a 17% decline on the 2019 area and a 7% decline since the initial survey in November. This figure is already being criticised by the trade as independent estimates believe it to be much...

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