Global grain markets continue to soar, as risk is priced in by traders and the reality of a prolonged period of limited supplies from the Black Sea sets in.
With global stocks already tight and major purchasers, including North African countries, already experiencing production issues for harvest 2022, the crisis is not only threatening Ukrainian sovereignty, but also extending its reach to the food security of nations already under pressure from soaring food prices.
Energy markets remain extremely fragile as was evident in WTI crude oil prices today, which broke through the $100/bbl level once again. Sanctions continue to be placed on Russia and its businesses, with a number of international banks refusing to get involved in financing trades of Russian commodities.
US soybean export sales saw strong demand, with a further 264KT booked for delivery to China in the 2022/23 season.
Meanwhile in South America, weather conditions have improved of late, helping crops to stabilise and harvest to progress.
There is a long way to go for Black Sea exports this season, with markets uncertain as to which exporter will pick up the slack. we explore this and more in our weekly analysis.