Despite supportive fundamentals, global grain prices drop, on fresh [bearish] developments.

Russian 🇷🇺 farmers have signed a petition to protest against the prohibitive export tax, hoping to replace it by a volume-based export quota. In China 🇨🇳, a new case of African Swine Fever has been detected. Traders are now questioning China’s import needs going forward, after record imported volumes in 2020. On the weather front, the Black Sea region is facing warmer temperatures and recent snow accumulation should have protected the crops against a major incident. In S. America 🇦🇷🇧🇷, recent rains will favour late crop drillings (corn and soya) and the ending of La Nina could well improve production prospects here. We expect price volatility to remain a feature in the coming weeks, as the market attempts to adjust from a tight old crop situation, to what could be a more burdensome new crop outlook. Risk management is the key!