Currency moves push up commodity prices

By FWi staff

LAST week (w/e 03 November) saw virtually all commodities increase in value, primarily a result of currency changes, reports Glencore Grain.

The European Central Bank helped to maintain the Euros steady upward trend by intervening and buying Euros.

As a result, the Euro traded sharply higher at $0.8745, up nearly 5US¢ from recent lows, and 0.60. The Pound has lost 12pfg against the Deutschmark.

Following a period of difficult selling, the rise in feed wheat values to 60/t pre-Christmas has been achieved in most parts of the country, and more is coming forward.

This is the first time prices have reached above 60 since mid-October.

Milling wheat has risen to 70/t, but there are still few sellers as millers tend to wait until they are sure that any feed rise is not just a temporary blip, reports Glencore Grain.

Barley prices also rose, finding support from the weaker Pound, the start of the intervention season on 1 November, and underlying export interest, reports the Home-Grown Cereals Authority.

Delivered barley prices are now about 3.50/t above wheat in most regions.

See more