Miller Magazine Issue: 154 October 2022

MARKET ANALYSIS 93 MILLER / OCTOBER 2022 Most people out there don’t seem to understand that the food that isn’t being grown in 2022 won’t be on our store shelves in 2023. We are potential- ly facing an absolutely unprecedented worldwide food crisis next year, but the vast majority of the population doesn’t seem very alarmed about this. Sharp crop reduction looks scary when we com- pare it YoY or “to the 190X” but we have to keep in mind higher population – then it looks even worse. This means the world needs Ukrainian grain and grain exports have to be extended. A broad sell-off in commodity and equity markets, tied to the high inflation, rising interest rates and an economic downturn that would dent demand, dragged down a broad set of other commodities. But still, Russian moves to mobilize more troops and illegal referendums on joining Russia in occupied regions of Ukraine fuelled concern about further disruption to the vital Black Sea grain trade. Dry weather in Argentina and the U.S. also supported prices. There are some rumors about the prolongation of the Grain Corridor Agreement and misunderstanding in part of the dead- line of passage, but UN WFP bought few more vessels for Octo- ber-November, so they are sure the agreement will be extended. After new rules of fumigation were announced by the Ukrainian government, lots of vessels were stuck in Istanbul which could Corridor of life Elena Faige Neroba Business Development Manager Maxigrain