Lentils Nervous Over Currency Volatility
PANAMA - Jun 26/16 - SNS -- International lentil markets ended the week on a uncertain note on account of significant weakness in international currency markets following the results of Thursday's Brexit referendum.
Britain voted to leave the European Union and the country's Prime Minister announced that he will step down in October to allow a successor handle the details of the exit. Under EU rules, this process takes about two years.
The immediate reaction in currency markets was to shift from other currencies to the U.S. dollar, resulting in week ending strength in the U.S. dollar relative to most currencies. That could see importers in several countries wait for exchange rates to settle relative to the U.S. dollar before covering additional needs.
It needs to be stressed that unease over currency is not limited to lentils. It affects all agricultural export markets.
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