February 22nd

Market Report

US Ag markets dropped on Friday, a USDA Forum highlighting a record planting season for corn and soybeans put pressure on the market, however, the market has some bullish fundamentals. The issue here is, the stocks are low and supplies will be very tight as demand increases. The world needs some good harvests to get itself back to surplus. Overnight the US markets are up but only slightly.

EU Ag markets were buoyant as supply issues still remain. The real story of last week has been the strength in STG, it continues to out perform the major 7. We are now almost 1.40 on the dollar, a level not seen since March 2018. Against the Euro, we are approaching 1.16. The vaccine roll out is the thing driving this, although without the rest of the world being vaccinated at the same level, the UK economy will hit its ceiling of growth fairly quickly and then it will stall.