Price Volatility in the European Cereal Market Following the Resumption of the Ukraine Grain Export Deal
Wheat
Ukraine
Regulation & Compliances
Market & Price Trends
Irene Fantauzzi
Published Nov 4, 2022
The grain market fell sharply on November 3 in Europe, losing gains made earlier in W44, following the news of Ukrainian exports resuming under the corridor security deal. Grain market volatility has become unprecedented, fuelled primarily by geopolitics, and therefore subject to great uncertainty. The agreement, which was initially scheduled for 4 months, will expire on November 19 and will likely be the subject of new negotiations. Therefore, uncertainty remains in the markets, and surprise developments cannot be ruled out. Sharp declines in cereals also occurred on the American market, especially in the maize market, which suffered from China's decision to authorise new exporters from Brazil as early as December to reduce dependence on the US and replace supplies cut off from Ukraine by the Russian invasion.
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