PRESS ROOM
Volatility in agricultural commodities due to geopolitics
Thursday 10th November '22
In its latest report, the United States Department of Agriculture (USDA) revised its global wheat and corn ending balance lower while the global soybean balance was lifted higher. Yet grain prices have come under pressure owing to ambiguity over whether the Russia Ukraine grain corridor would be extended in November. Initially on 29 October 2022, Russia announced its intention to pull out of the grain deal that UN and Turkey brokered with Russia and Ukraine. Shortly after Russia agreed to rejoin the Ukraine export deal ending the stand-off that threatened to re-ignite a global food crisis. Russia’s back-to-back announcements are a stark reminder of just how volatile the situation in the war-torn Black Sea region has been and its impact on agricultural commodity prices.