Overnight the US markets are down again, yesterday was a pure rollercoaster with US markets heavily down then ending the day up. There are issues in these markets in that consumers and farmers are mainly sitting out and it seems to be funds that react to smallest piece of news. This makes markets very volatile and hard to predict.
With food prices at such high levels changes will be occurring at the consumption level as people across the globe try and rationalise spending. This will surely mean a drop in demand and hopefully less food waste in the western nations and a reset in consumption values...time will tell.
Inflation as measured on the CPI is now at 9% in the UK and it will go higher. Currently the BOE is happy to leave rates on hold as they feel that inflation is 80% external factors so not much they can do.
Harvest 2023 is the market to watch at this moment as prices are high but expectations are that the war will end in the Ukraine and this will ultimately put pressure on prices. Fertiliser prices have dropped back and a margin is there to be made.