World: World grain markets drop steeply in November on fears of economic recession and other factors

In November world grain, particularly wheat markets, dropped steeply. Markets were influenced by the fear of an economic recession, made worse by strict Chinese corona policies and the continuation of the Russian war against Ukraine, H. M. Gauger GmbH said in their December report.

Positive signs were the confirmation of an open (though slowed down) corridor for Ukrainian commodities through the Black Sea. Supplies of gas, oil, many other commodities became better available, world market prices declined.

Australia’s wheat and barley, Russia’s wheat, Brazil’s corn and beans, all record crops, turned buyers away from U.S. and EU grain markets, and put strong pressure on the exchanges in the U.S. and Paris. Supplies of grains and oilseeds will be safe in 2022/23.

For next year’s production there is concern about a very small crop in Argentina, dry conditions in the U.S. southwest wheat belt, and frost damage on snowless fields in southern Russia and Ukraine.