2-1 IAN USSR Wheat

 Rabobank is a financial partner for thousands of individuals, businesses, farmers and ranchers, food and agribusiness companies and other select institutions across the Americas. This company obviously has a lot riding on agricultural trends so research isn’t just a luxury, it’s mandatory. In a recent conversation with Sterling Liddell, Vice President of Food & Agribusiness Research and Advisory. His observations were eye-opening:  “The main point of our research is that prices are pushing higher and volatility is persistently and continuously growing. One reason is both on supply and demand side. Russia and the Black Sea area including the Ukraine have become the incremental grain producer in the world. As the U.S. has produced less wheat, Russia has increased production and become a sizeable part of the global export of wheat. The contribution to volatility comes from a colder and more volatile climate in Russia that can produce bumper crops but the next year experience whithering drought.”