Agri Commodity Markets Research January 2022: La Niña and the Russian Bear
World food prices experienced short-lived relief in December before the new year’s geopolitical and weather risks reignited the bull market. Global agricultural markets are witnessing an alternate version of the Goldilocks story. On the one hand, a capricious La Niña (which means girl in Spanish) is shaving South American corn and soybean yields. On the other, a Russian bear is threatening full-scale war in the breadbasket of the Black Sea. Farm input prices are soaring, and farmers are reluctant sellers. 2022 looks to be marked by irrepressible demand falling on unreliable or reticent suppliers, with enduring risks to the consumer.