Supply and production concern surrounding Ukraine and Argentina, logistics and cold weather issues in Canada, and excessive rains in Brazil are combining to create an uncertain global grain market. As the Ukrainian currency falls amid political turmoil, money is flooding into commodities markets as sellers are retreating from the market hoarding crops in hopes that the economy will stabilize. Working capital for financing is drying up and is putting spring planting at risk. As rain delays harvests in Brazil and lack of investment in infrastructure causes congestion at ports, U.S. soybean futures jumped on increased exports. Argentinian farmers are still hoarding their soybeans as the country suffers 30% inflation per year and crushers are running at 30% capacity. In Canada logistical problems are being compounded by snow as vessels wait at port to be loaded and demurrage charges increase. This combination of conditions will likely keep feed costs firm at least until harvests in the Northern Hemisphere begin later in the year.
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