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2017 starts with some analysts (e.g. Goldman Sachs) predicting a bullish trend for commodities such as mineral and oil but not wheat and corn. Growth in the global economy combined with reduced stocks will support oil etc but record global stocks of corn and wheat weighs on sentiment.
US markets in 2016 saw corn down 2% during the year, soya + 14% and wheat -13%; markets not helped by stronger $.
World wheat supplies bolstered by raised Argentinean wheat harvest now estimated + 15 mmt (USDA 14.4 mmt). Western Australia also posting big harvest numbers.
Egypt buys 235,000 wheat all Russian apart from one Ukrainian cargo, surprisingly no Argentinean wheat.
Oil prices remains stables, markets wait to see if OPEC induced production cuts will be implemented in January.
This year is the centenary when Fitz Haber and Carl Bosch created the Haber – Bosch process, transforming air nitrogen into fertiliser. author: Joe Beardshaw