The past year brought us some bitter surprises on the market for agricultural commodities. The weather extremes seem to be increasing. In Russia, the grain fields suffered from drought, heat and drought also in the western United States and Canada. The yields have been correspondingly weak and the world ending stocks are shrinking. Australia, on the other hand, had a record grain harvest, but this was affected by heavy rain shortly before the harvest.
The coming year should be just as exciting, because the La Nina weather phenomenon affects not only the weather in the southern hemisphere, but also in the north of America. Influences will also be felt in Russia, China and Australia.
The US grain magazine World Grain also fears that the COVID-19 pandemic will continue to stress supply chains and believes that grain-importing countries will have to hoard more supplies.
Source
Hansa Terminhandel GmbH