Oct 05, 2022

Ingredients Market Report: October 2022

2022-11-16T15:55:34+00:00October 5th, 2022|Market reports|

Markets dislike uncertainty, and FX markets are particularly prone to this. With the global financial crisis, driven by all factors known to us, it is difficult to predict any movement therefore. Certainly, the deepening EU energy crisis as winter approaches. Recessionary fears globally are a major concern obviously, and the continual strengthening of the US$ adds to this.

Sep 06, 2022

Ingredients Market Report: September 2022

2022-10-05T13:11:14+01:00September 6th, 2022|Market reports|

It is worth considering for a moment the yearly movement on exchange rates and thus their impact on prices as the new season begins. At $/€1.19 last September prices were 19-20% better with regard to imports than today should raw material prices be similar. Meanwhile the £/€ is roughly similar and the £/$ is also worse by also 19-20%. Why is this happening despite Central banks intervention and interest rate rises? Well it is about the serious and more or less inevitable deep recessionary fears within the EU & UK.

Jul 06, 2022

Ingredients Market Report: July 2022

2022-09-06T14:42:08+01:00July 6th, 2022|Market reports|

The EU is struggling the most in these current trading conditions, with Germany announcing its first trade deficit in 30 years, and the Euro at its weakest point against the US dollar in ten years. The trade shock of rising import costs, oil & gas price levels and trade disruptions have come to bear severely. Euro zone inflation is rapidly increasing too.

Jun 01, 2022

Ingredients Market Report: June 2022

2022-07-06T10:18:41+01:00June 1st, 2022|Market reports|

The Euro has edged upwards in recent days as the situation in China relaxes a little and the sensitivity to the Ukraine/Russia situation settle down a little. This combined with a less pessimistic view of the potential rise in US interest rates has favoured the Euro and indeed Sterling. Sterling was also heled by the recent £15 billion fiscal package softening the cost-of-living issues faced by all. Currencies remain vulnerable to the global outlook however which is increasingly uncertain and thus volatility is here to stay.

May 11, 2022

Ingredients Market Report: May 2022

2022-06-01T12:39:45+01:00May 11th, 2022|Market reports|

The US dollar is definitely benefiting from the adverse risk scenario we are all feeling, and with Sterling under pressure due to political instability we are seeing rates reach their worst position for some years. The Euro will be supported by the ECB over the coming weeks with interest rises more or less guaranteed for July. But we are approaching US dollar parity which is incredible.

Apr 01, 2022

Ingredients Market Report: April 2022

2022-05-11T09:50:25+01:00April 1st, 2022|Market reports|

The Ukrainian-Russia situation still dominates international markets. With the US seeing increasing inflation there is some sentiment for a half percentage point interest rate hike which will assist keeping the US dollar firm. In the UK weak data, escalating inflation, and liquidity challenges brought on by rising prices has weakened Sterling. The UK is also performing worst in the global trade recovery where our exports have declined 14% against a global recovery of over 8%, The UK is the only country that has not recovered to pre pandemic level of exports, a symptom of Brexit.

Mar 04, 2022

Ingredients Market Report: March 2022

2022-07-11T12:32:46+01:00March 4th, 2022|Market reports|

Obviously, the situation that developed in Ukraine last week is and will continue to have a major impact on foreign exchange markets and equities. This volatility will remain for some time, although to date the impact has been relatively minimal bearing in mind the financial sanctions imposed on Russia. Fundamentally the Euro has taken the worst of the adjustment, followed by Sterling as funds move to safe haven currencies, in particular the US$. This will cause imports to increase price, although of course, exports will show some foreign exchange weakness to counteract the adjustment somewhat. It is very hard to see this situation change in the coming months.

Feb 01, 2022

Ingredients Market Report: February 2022

2022-03-04T18:58:32+00:00February 1st, 2022|Market reports|

Since the beginning of the year the US$ has strengthened slightly but largely rates have stayed stable. It is well established that interest rates will increase during 2022. In the USA the Federal reserve advised they expected to implement three increases through the year, and the EU/UK banks will almost certainly follow suit. Indeed, the Bank of England has indicated rates will go up first week of February.

Dec 02, 2021

Ingredients Market Report: December 2021

2022-02-01T13:29:44+00:00December 2nd, 2021|Market reports|

The obvious concerns of the economic impact of the new variant have probably removed the risk of increased interest rates early in 2022, since the economic shock and risk of further lockdowns or escalating cases. But high inflation rates are leading to increased pressure for pay rises and whilst there appears little chance of these reducing, with Omicron adding further pressure to supply chains & labour shortages.

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