Agri Commodity Markets Research October 2021: Buy Back Better
The northern hemisphere summer harvest began in earnest last month, revealing improved production on higher acreage and decent yields. The surge in availability provided seasonal – though short-lived - respite for repressed grain and oilseed consumers. Coffee markets were volatile as good rainfall triggered flowering in Brazil, but risks of long-term dryness keep prices elevated. Agricultural prices continue to be well-supported by strengthening demand, potential La Niña-related weather issues in North and South America, and surging inflation in key related areas: energy, fertilizers, seeds, labor, and transport. Agri consumers have long awaiting an opportunity to buy back better – at lower levels – and many took last month’s price breaks with open arms.