November 2022 Market Report

Most global agri-commodity prices declined in October, but cereals are again rising. The FAO food index remained virtually unchanged in October after six consecutive months reflecting a MoM decline. Most agri products remain in a downward trend, but cereals managed to rise for the second consecutive month faster than the month before. This trend reversal in cereals is also presented by the US dollar, which had soared through most of the year and started to decline in late October and continued to weaken in November. Since July, the Euro has been trading at its highest level against the US dollar. A weaker US dollar makes non-US food exports more expensive elsewhere, which can be reflected in global agri commodity prices. Additionally, input prices such as oil and fertilizers seem to have reversed their downward trend in October/November, putting more pressure on agri commodities. Higher feed, fertilizer, and energy prices and a weaker US dollar might indicate a possible inflection point for global agri commodity prices.