2021 report and outlook for 2022

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Agricultural news

The year 2021 has turned out to be a prosperous year for all actors in the agricultural sector value chain. Agricultural commodities have been trending upward since early 2021. The trend has strengthened mainly due to the recovery in demand and after a brief correction between late August and mid-September, agricultural commodities have resumed the upward trend .

The year 2021 has turned out to be a prosperous year for all actors in the agricultural sector value chain. Agricultural commodities have been trending upward since early 2021. The trend has strengthened mainly due to the recovery in demand and after a brief correction between late August and mid-September, agricultural commodities have resumed the upward trend .

The unblocking of economies continued, and trade-related activities therefore continued to recover. Edible oils such as soybean oil and palm oil hit record highs in 2021 with similar performance for oil seeds such as castor, RM seeds and soybeans. Cotton has also managed to show new heights. Calendar year 2021 also saw the guar complex register strong gains after a consolidation phase of more than 2 years.

Comparing the closing prices of December 2020 with those of December 2021, the benchmark soybean contracts have appreciated by almost 43%.

Cotton and cottonseed meal are up 65% and 35% respectively. Likewise, guar seeds had appreciated by 53 percent. Jeera, turmeric and dhaniya closed with gains of 28%, 62% and 52% respectively. Castor, meanwhile, rose about 27%.

Agricultural markets are expected to remain strong in 2022 amid upward pressure on global food prices, boosted by reports of unpredictable weather, rising consumer inflation and an energy crisis and work. As the costs of fertilizers and other inputs increase, so do the costs of production for farmers. Despite emerging threats from the new variant of COVID-19, China is on track to achieve economic growth, exceeding its set target by more than 6% this year. The country is able to control its inflation and the economy has continuously recovered in 2021.

Global commodity markets are heavily influenced by the performance of the Chinese economy and this will remain a key driver of agricultural markets.

The Omicron Covid variant is unlikely to significantly disrupt global growth, so we would expect an overall positive bias for most agricultural commodities. Vaccination rates have increased as the world seems to be quite experienced now, in terms of dealing with the pandemic threat. India’s export prospects for cotton and spices remain higher for 2022, while the demand for edibles could see its consumption increase, once the restaurant and hospitality sectors fully recover. activities. All in all, we expect most agricultural commodity prices to remain above the 2020-2021 average levels.


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