Commodity prices follow Euro
AGRICULTURAL commodity prices and support levels are closely linked to the value of the Euro against Sterling, observes Jimmy McLean, head of agricultural services with the Bank of Scotland.
The result of this link is that trends in farm profitability follow an almost identical pattern to the fluctuations of the Euro against Sterling.
In practice, Mr McLean says this has meant commodity prices have fallen as the Euro lost 11% of its value against Sterling in its first year.
McLean sets out the case for the Euro to recover against other currencies, but admits there are still uncertainties over that recovery.
- Pound set to stay strong in 99, FWi, 15 January, 1999
- More call for Brussels payments in Euros, FWi, 30 October, 1998
- The Herald 17/01/2000 page 18