Dollar, not Euro, will rule straights in 99

By FWi staff

THE launch of the Euro is not likely to have any effect on the strength of the market. Rather, what the Pound does against the Dollar will be key, said Martin Douglas of Cargill plc.

As values have plummeted this season, Mr Douglas believes that straights will be good value over the coming year. His advice is to watch the prices closely and study what the market is doing.

Farmers who have not covered themselves for the rest of the winter should do so because supply is tight, he said. And Mr Douglas does not anticipate any significant decline in prices.

But those who willneed big supplies in the summer should start looking even now. Sunflower for the summer of 1999 is looking very attractive, said Mr Douglas.

Just as he said there would be no major declines in values he also warns that producers not to anticipate any significant increases as the year progresses.

Peter List of Dalgety agreed with this saying that the industry would not see the same falls that were experienced in 1998. And he advised that when buying farmers should buy a small amount at the moment to cover themselves and then continue to take cover to avoid any serious price swings in 1999.