BAKU, Azerbaijan, July 16. Further decrease in grain prices is expected in the second half of 2022, Trend reports via the recent outlook from Fitch Solutions.
“The decline in grain prices that began in the latter half of the second quarter of 2022 has continued through the third quarter to date on the back of increasing physical supplies and in anticipation of the start of the harvest season in the northern hemisphere, which commences in the third quarter,” the report said.
According to Fitch Solutions, grain prices have decreased to the level last seen before the Russia-Ukraine conflict, with wheat prices down by 35-40 percent from their 2022 high, and corn prices down by 30 percent.
“We expect further easing in grain prices in the second half of the current year as supplies continue to increase and fertilizer costs continue to fall while the global slowdown in economic growth and a broad-based tightening of monetary policy will serve to trim demand,” the report noted.
Even so, in the prolonged absence of regular exports from Ukraine, the global grain market will remain tight, which leads to prices being vulnerable to the factors that potentially threaten production volumes.
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