Pound Hits Lowest Since 1985 Vs USD As UK Votes "Leave"
The day ended with Jul 16 London close down GBP1.50/tonne at GBP104.50/tonne, Sep 16 Paris wheat was down EUR2.50/tonne at EUR159.0/tonne, Aug corn was EUR1.00/tonne easier at EUR176.00/tonne and Aug 16 rapeseed was down EUR2.75/tonne to EUR356.25/tonne.
As I write this the morning after the night before, the market was wight to be nervous, and the bookies were wrong to be offering 3/1 about a successful "Leave" vote over "Remain", with the former claiming a 52:48 point win.
Cameron has decided that he can't really continue to lead a country out of a Europe that he so vehemently campaigned to stay in, and will step down by October.
The pound has crashed below 1.40 - to levels not seen since 1985 - against the dollar this morning, having closed at 1.50 last night. It is also sharply lower against the euro.
In theory that should provide some support for London wheat as it improves our export competitiveness. Last night's close in London was the lowest for a front month since April.
The news is bearish for grains in general though, and the overnight Globex market is a sea of red this morning. Change is one thing that commodities don't like, and this certainly falls under that category heading that's for sure.
