Happy New Year! All of the ODA team joins me to wish you the best for 2022. We wish you health and happiness, good yields and high margins!
The global environment is positive for farmers. Despite higher costs and lower subsidies, current market conditions should allow the season to be one of the most profitable in years.
World stocks remain low. Demand remains very strong and supplies are still at risk in major production areas like South America and the Black Sea.
Price direction is always hard to predict at this time of the year. Weather conditions will be one of the main influencers, but we will also need to watch for other uncertainties: COVID, geopolitics, energy prices, freight costs, inflation risks, and currency rates will continue to directly influence our markets.
Like last year, the Christmas break has been a volatile period for prices. Like last year, markets have been strongly influenced by weather conditions in South America. Like last year, La Nina is threatening what was seen as record Argentinian and Brazilian crops!
Meanwhile in Europe, winter has been very mild thus far, increasing disease and pest pressure. However throughout our region, conditions are beneficial to crops.
So, let’s be prepared for another year of roller-coaster movement. Prices can really move both ways. Never before have new crop prices been so high at this time of the year. We have already engaged part of your new crop production to secure your 2022 margins. We will monitor very closely the situation in the coming months and we will probably engage more volumes before harvest as volatile market conditions will provide opportunities!
CEO ODA UK