As the Covid-19 pandemic carried on through 2021 we saw quite the interesting year for grains and that trend looks to continue in 2022. Soybeans remain trending up, but that trend could have a ceiling depending on weather improvement in South America. Piggybacking off the weather in South America, corn also remains in an uptrend going into 2022 due to damaged supply in South America. As always, Chinese demand will be a major impact and trend to watch across all grains.
- We are expecting to see better soybean demand from China in 2022 despite the lower than expected numbers toward the end of 2022.
- The expected drop in corn production out of South America is propping up expected U.S. exports despite less planting acreage.
- Wheat is being impacted by poor crop conditions and inflation. Sluggish demand and the weather are something to keep an eye on in 2022