Whichever way the decision goes, stay in or get out, there will be significant changes to present and forward prices. If fundamentals and weather were taken out of the equation, the Brexit result will affect currency. Stay in and the £, in the immediate future, will strengthen, the down side is that exporting commodities will lose their competitiveness and grain prices will fall. If the £ returns to a rate as seen in 2015, prices could reduce by 16%. Getting out will possibly mean further weakness in the £, exports will be more competitive but potentially improving prices by 8%.
The volatility of prices will continue to make grain marketing even more difficult, it is proven that using marketing tools reduce risk and improve the resilience to market volatility.
For further information on grain marketing please contact us.