Currency plays lead role in barley market

By FWi Staff

IT has been a volatile week for barley markets with currency at the centre of most changes.

The Pound plummeted to a low of DM2.72, improving UK competitiveness on export markets and causing two Green Pound devaluations. This put £2.50 on the November intervention price. Intervention now stands at £83.91 delivered.

Following the interest rate cut on Thursday money market opinion has moved firmly behind the view that the Pound will not return to the highs of earlier this year, noted a spokesman from Banks Agriculture. “It is not known how much further the Pound will be allowed to fall by the Bank of England, but another interest rate cut this year is now expected.”

There is a good shipping demand, said Ian Wallis of Cargill Plc, and ex-farm values close to deep water ports are now trading at about £75/t.

Spot values for feed barley have risen to £73.15/t this week in some counties while malting barley is at £77.10/t.