United States: Prices didn’t get this way overnight
United States
Published Apr 20, 2022
Tridge summary
When Russia invaded Ukraine on Feb. 24, it brought into sharp focus just how interrelated the world’s commodity markets and supply channels are. Wheat and then corn prices shot up as farmers faced prospects of even higher fertilizer and fuel prices. But producers and analysts who had been following those markets for months saw the developments as a continuation of a process that began when weather problems began to unfold in several regions of the world in 2020.
Original content
“I think we need to go back and remember that while Russia and Ukraine are on our minds, we didn’t get here overnight,” said Dr. Seth Meyer, USDA’s chief economist, speaking during a webinar presented by the U.S. Soybean Export Council. “We didn’t get here with these higher prices overnight. “I think many of your producers would say prior to the fall of 2020, maybe their sentiment wasn’t so positive in terms of prices” he said. “In 2020, China comes back into the market. Demand is robust. We see corn and beans really show some strength. “By the summer of 2021 Russia’s crop doesn't look so good, and the government begins talking about export controls,” Meyer noted. “Wheat grows its own legs, and prices start to rise again. Then the latest issue is simply Russia, Ukraine, the ability to export wheat and the ability to grow corn for the Ukrainians.” The crop calendar for Ukrainian farmers is very much like for Iowa and Indiana farmers. “So they’re very anxious to get out there in the ...
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