Commodity markets jittery after US attacks

By Robert Harris

FUEL and commodity prices have settled into an uneasy calm after panic hit the markets following last weeks terrorist attack on the USA.

But it might only be a brief respite and farmers should secure diesel supplies now, warns John Ringwood of midlands-based supplier ACT.

Although quotes are still hard to find, red diesel is now available for 20-21ppl on farm, just 2ppl above last Monday weeks values.

Brent futures closed last night (Wednesday) at $26.30 – cheaper than before the attack.

Supply guarantees by oil-exporting countries helped to prevent rocketing prices, said Mr Ringwood.

“But I cant see oil prices going down much more. The market is very nervous.”

Exchange rates have remained relatively unaffected, calming fears of currency-induced volatility on commodity prices.

The Pound is now worth $1.46, just 1% more than a fortnight ago.

The grain market is also calm and the animal feed market is returning to normal after some compounders, concerned about oil and transport costs, stopped forward sales of feed last week, said UKASTA policy director Paul Rooke.

US soya bean December futures remain in the middle of their recent range, at about $170/t.

Some quotes show hi-pro soya gained 7/t on the week to 166/t ex-store, but Nov/Apr prices gained just 2/t.

Fertiliser prices have changed little in the past two weeks. Forward UK AN is worth 110-114/t for November; imported supplies 95-100/t.

See more