Currencies

Wheat

The seemingly never ending bearish view on the market has taken a definite about turn this week, with a combination of rising tensions in Ukraine and continued dryness across Northern Europe.

It has been made very clear that Russia no longer feels that the grain corridor is being used to move the grain it was designed to, and therefore have said that they will not support it after the July cut off - unless restrictions on Russian trade is eased, which is not likely. The dam blast which flooded Crimea has displaced around 4.4 cubic miles of water, leaving 94% of the Kerson region with no water (the most fertile area of Ukraine for crop production), and probably affecting the agricultural output from that region for up to 5 years.

As mentioned before, the Supply & Demand for next season is healthy, and the WASDE report last week supported that, raising end stocks by a further 4 MlnT, however, it is finely balanced and any weather scares or threat to anticipated supply, will start to rally the market.

Soya

Soya prices are still coming lower, albeit at a slower pace now with the Ukraine situation escalating.

The Brazilian crop was revised upwards again this week up to 156 MlnT and US plantings are all but done now ready for any rain forecast. This would mean that a combination of the potential US crop and the already known Brazilian crop would give us the largest figures ever for this season.

Organic

Organic prices appear to have found a level at the moment which is generating new crop trade and origins are likely to be Romania and Kazakhstan this coming season.

Indian soya suppliers are in the process of re registering for their organic status after the EU removed all Indian bodies from their approved organic suppliers, which meant that the UK followed suit. This is likely to be August/September before we know if any are successful which means it is more than likely soya supply will switch to Chinese certainly in the short term. This means lower quality protein which could bring in some other alternative protein sources into organic diets in order to be able to balance that.

And Finally…

Another Publicity Stunt that went wrong?

An NBA game between Miami Heat and Denver Nuggets had a half term publicity stunt, which did not quite go to plan.

In the Red Corner there was Burnie the Miami Heat mascot, who was dressed as a big chick, with large boxing gloves.

And in the Blue corner there was Conor McGregor, the Irish former Ultimate Fighting Championship Featherweight and Lightweight Champion.

Hardly a fair fight. However, it has to be remembered that Burnie is supposed to be a "rough, anthropomorphic depiction of the fireball featured on the Heat's logo".

The plan was that Conor was supposed to punch the mascot down to the floor, and administer a magical black bottle of pain relief spray.

Unfortunately, the first hit to Burnie floored him, and Connor’s second, whilst Burnie was still on the floor (what are the rules of UFC?) incapacitated the mascot.

Burnie never got up having been knocked out, and despite Connor’s lame attempt to apply the mystery potion, the mascot was dragged off into the wings, and then was sent to hospital, where he received pain medication, and was sent home to rest.

The UFC president, Dana White, was questioned about the idea of mascots taking punches from "professional fighters", and said it "doesn't seem like the brightest thing in the world".

Sponsors may want to reconsider using Connor’s fists, and they may also want to retire Burnie, who hardly upheld the image that Miami Heat may have wanted to portray.

Regards,

Kay Johnson & Martin Humphrey