Miller Magazine Issue 137 May 2021

101 MARKET ANALYSIS MILLER / may 2021 “The grain market continues its inertial movement in an upward trend. Insignificant precipitation in the East of the USA and in Brazil did not reduce the degree of bulls' mood, but as the release date of the May WASDE report approaches, the behavior of players on the stock exchange becomes more cautious.” The shortage of raw materials is due to the emergence of the world economy from the coronavirus crisis. Nearest contracts cost more due to hopes of the world economy’s recovering. There are still lots of non-commodities mon- ey on the market, especially in grains: funds net positions huge, daily prices rise but cash market is much weaker. The pace of rally gets slower, but it is still with us. The mar- ket is overliquid on weather and nobody knows for sure what could happen next. Demand for all commodities from oil and copper to grains is growing, exacerbating backwardation, which has already reached record levels in the past fourteen-plus years. It is based mostly on production concerns and un- certain consumption. Some commodities repeating 2007- 2008 scenario. This indicates a shortage of raw materials, the demand for which is due to the recovery of the world economy May it May Elena Faige Neroba Business Development Manager Maxigrain