Miller Magazine Issue: 145 January 2022

Another Covid-19 pandemic year has finally come to an end. 2021 has been a very volatile year for the grain markets. In many regions, extreme weather events such as heavy rains, drought, and frost have adversely affected the crop. The increase in the cost of energy, the growth in the demand for biofuels, the record levels in fertilizer pric- es caused the prices to reach record highs. Panic purchases and the tendency to keep stocks increased by rising prices also boosted the prices. This has increased the pressure on supply chains. Freight rates for major exporters have increased by more than 40 percent due to supply chain bottlenecks and tight supplies of cargo ships. Some coun- tries have implemented trade policies intended to mitigate the effects of rising food prices. These restrictive policies further increased the volatility in the grain markets. So, what awaits us in 2022? Will the volatility in the markets continue? Will the markets enter more stable waters? Will prices return to pre-pan- demic levels? What will be the key factors affecting the wheat prices in the coming months? In its Agri Commodity Markets Research Outlook 2022, Rabobank, an agribusiness banking specialist, said that it’s highly unlikely that food prices will go back to pre-pandemic levels in 2022, as commodity pric- es are now supported by inflation, including high shipping costs, ener- gy and fertilizer prices, and a shortage of labor. “2022 will start from a position of low stocks in many agricultural commodities, which should lead to heightened volatility. A ‘normalization’ of the supply chain in 2022 is unlikely and players will have to find solace in just a bit of a price drop off historical highs, and hopefully fewer booking cancella- tions,” the report highlights. In his exclusive interview with Miller Magazine, Matt Ammermann, commodity risk manager at StoneX, also said that he expects the vola- tility to continue. “Various FED’s have increased money supply to com- bat the pandemic, but now as we get into 2022 they have started to communicate reducing their stimulus efforts…I think the largest factor over the coming months will be what spring weather and fresh specu- lative money flows”. Let’s see what this year brings. I wish all people a very happy, safe, and healthy 2022! editor Namık Kemal PARLAK millermagazine company/millermagazine millermagazine Parantez Publishing and Congress Ltd. Gökevler Mah. 2312 Sok. No:16/37 Ginza Corner Plaza, Esenyurt / İstanbul - TURKEY T. +90 212 347 31 64 F. +90 212 212 02 04 www.millermagazine.com info@millermagazine.com On Behalf of Parantez Publishing and Congress Ltd., Owner Zübeyde Kavraz Responsible Manager Namık Kemal Parlak Editor-in-Chief Namık Kemal Parlak Editors Mustafa Yağmurlu Cemalettin Kanaş Sales and Marketing Burcu Çetin Ebru Ildan Sevin Art Director and Visual Design Alparslan Murat Aysu Corporate Communications Ahmet Hamdi Annaç Consultancy Board Ali İhsan Özkaşıkçı, Chairman of AUSD Mesut Çakmak, Chairman of GUSAD Erhan Özmen, GUSAD Honorary Chairman Bekir Bağış, Chairman of Çukurova Flour Industrialists Association Hasan Özmermer, Board Member of Özmermer Flour Derviş Toprak Mehmet Şerif Gültay Referee and Scientific Advisory Board Prof. Dr. Mustafa Bayram Prof. Gustavo Sosa Prof. Dr. Hazım Özkaya Prof. Dr. Harun Dıraman Asst. Prof. M. Kürşat Demir Asst. Prof. Halef Dizlek Asst. Prof. Mustafa Erbaş Publication Type Periodic (Monthly) Printing - Baskı İhlas Gazetecilik A.Ş. Merkez Mah. 29 Ekim Cad. No: 11 A 41 Yenibosna-Bahçelievler-İstanbul Tel: 0212 454 30 00 All copyrights belong to Parantez Publishing. © May not be used without permission. Responsibility of the ads belongs to the advertisers. ISSN 2718-031X COPYRIGHT PAGE Happy 2022!