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Apart from rising in price of wheat, corn and soybeans, the coffee prices also rose - 20.2.2014
Slowing economic growth in China has strengthened the Japanese Yen (USDJPY) (fall on the chart). It is considered as a safe heaven in Southeast Asia. Note the negative data on foreign trade in Japan came out last night. Compared to last year, imports increased by 25%. This may limit the reducing potential for the yen on the chart. After the accident at Fukushima, Japan has closed part of the APS’s. As a result, Oil imports grew by 28.1% and imports of liquefied natural gas - by 21.4 %. Of course, this is a heavy load for the Japanese economy. The wholesales in Canada for December by 1.4% to its lowest level in six months. It is much worse than expected. As a result, there was a strong weakening of the Canadian dollar. On the chart, it looks like a strong growth of the (USDCAD).
The unemployment in the UK rose unexpectedly in December to 7.2% in spite of the forecasts. This reduced the likelihood of an early increase in interest rates and led to the Pound weakening (fall on the GBPUSD chart). Before it was insignificant as the majority of the Forex market participants believed that the UK economy remains strong. Tomorrow the meaningful data on retail sales for January are coming out.
Apart from rising in price of wheat (Wheat) and soybeans (Soyb), there is a strong growth in coffee prices (Coffee) observed. Its price has risen for three weeks by almost 40% and reached an annual high due to fears of crop reductions due to bad weather in South America. The pessimistic scenario is that the production of coffee in Brazil this year could shrink by 30 %. Exact figures are difficult predict before the harvest beginning in May. A similar situation is for the Brazilian soy. Farmers can not say the volume of production what will be for the current year. Now soybean crop in Brazil is estimated at 85-92 million tons. Agricultural agencies regularly report their updated forecasts. This causes the soybeans price fluctuations in frames of the uptrend. Note also the growth of Corn quotations. Neat release (GMT+0, Greenwich): 11:00
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