Friday saw another sell off in the global wheat markets, in general brokers seem to be saying the Christmas lull has begun sparked off by the Omicron uncertainty. This feels very much like a repeat of last year and probably the year before that. Major multinationals have pushed workers to stay home and the knock effect has been markets taking another risk off approach. If the Omicron is mild then we could see a rapid recovery in most markets but this is too early to say.
We still await news on the 'massive' Aussie crop and how the quality has faired. Russia remains in the news with a gradual increase in its export tax on wheat and its proposed limit on wheat exports in the New Year. With that and the potential to invade the Ukraine Putin is ending the year with bang. China is relatively quiet, they are claiming to have a large corn crop so are staying out of the market for the time being. Pork prices in China remain very depressed as the glut on the market continues and no real demand. The power house of the Chinese economy is slowing and could remain stagnant as the huge and indebted property companies could still falter on massive loan repayments.
Lets hope the New Year brings a some better news.