Monday Market Briefing - 23rd June 2025

Markets have firmed slightly and there is better value around now particularly on new crop compared to a week ago. Gains were muted as diplomacy appeared to be the order of the day , also the weight of next years supply has not gone away and will continue to be a brake on any further rallies.

Of course, the main issue in the short-term now is the US strike on Iran over the weekend. Trumps claim that he has achieved, in one night, the ‘total obliteration’ of Irans nuclear capabilities is surely ludicrous. The assumption must be there will be further action and indeed retaliation to come. US shipping assets in the region, both military and commercial, are an obvious target so we expect some further position covering in the market this week which will tend to push us higher again.

Notwithstanding the unpredictability of these geopolitical developments, it remains our view that any substantial rally is a selling opportunity to be gladly taken advantage of when it happens.

Have a good week.