January 20th

Market Report

All US markets continued their rise yesterday as Russia maintained its position against Ukraine. This pushed UK wheat up by another £3/mt, it has been a good week for the wheat market with £8/mt recovery so far. It does need to be stressed that should Russia do nothing and pull back markets well drop back. For now there is no sign of this and any small amount of news highlighting Russian aggression will spook markets. The fact that Russian troops are staging training exercises in Belarus is another aggressive move.

Overnight US markets are unchanged and will be watching carefully for any more news, this will leave EU markets looking for direction.

Inflation is stalking the global economy and the fear for every nation is food price inflation. People have to eat and if they can't afford food they will get vocal and in autocratic regimes this fear is heightened. Malaysia is imposing an export tax on palm in order to keep domestic inflation under control. This will keep oilseeds in the spotlight. German crushers have highlighted that they are struggling to buy any stock and if they can't get the stock do they stop crushing altogether? Price rationing demand.