Grain markets showing signs of rationing: focus now on South America
World grain markets are showing signs of rationing after a series of poor harvests pushed commodity prices to a high level, according to a leading market analyst.
Alexis Pouye, Managing Director of Offre & Demande Agricole (ODA) UK, said there were signs that the markets were moving towards equilibrium, but there were still a number of factors that could cause volatility.
“A few weeks ago we were saying that rationing was necessary and now it is starting to happen. In the short term the markets may come under pressure, but after this prices should remain at relatively high levels,” he said.
Mr Pouye was speaking at a briefing hosted by CropWorld Global 2012, in the lead up to its conference and exhibition being held at the Queen Elizabeth II Conference Centre, London, from the 6th– 7thNovember.
“A combination of political factors and weather events , including the financial crises in Greece and Spain, dry conditions in Western Europe and the Russian and US droughts, has created an exceptional situation,” he said.
“The pig inventory is showing signs of rationing, and we have seen ethanol producers margins drop, but the South American harvest is where the focus will be in the short term,” he said.
CropWorld Director Terri D’Elia said the current harvest reports and the influence of adverse weather events had meant there was a renewed emphasis on crop science and technology.
“The harvest reports we have been seeing for 2012 have highlighted the rising demand for food and the rising costs of productions, as well as the pressures of land and water resources. At CropWorld Global we offer a platform for industry leaders to debate and explore new solutions to the issues of crop production,” she said.
NOTES TO EDITORS:
For Further details on the Cereals Market Update contact Alexis Pouye at ODA Tel: +44 (0) 1223 894791
CropWord Global 2012 is being organised by UBM in association with the British Crop Production Council (BCPC). UBM uses it experience in overseas markets to complement and build on the annual CropWorld conferences and exhibitions by running regional events in key crop producing regions of the world.
Further details on CropWorld are available from Terri D’Elia, Event Director, UBM Conferences. Tel: +44 (0)20 7560 4364, email terri.d’elia@ubm.com or go to www.cropworld-global.com
ABOUT UBM
UBM Plc is a leading global business media company which informs markets and brings the world’s buyers and sellers together at events, online, in print and provides them with the information they need to do business successfully.
UBM Conferences operates internationally across all UBM’s division to bring its unrivalled content and thought leadership to marketers and business professionals across a wide range of markets.
Further details are available at www.ubm.com
ABOUT BCPC
BCPC promotes the use of science and technology in the understanding and application of effective and sustainable crop production. BCPC is a Registered Charity and a Company limited by Guarantee.
Further details are available at www.bcpc.org
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