One of the most significant monthly events for the agricultural futures markets is the WASDE report. While the supply and demand data and USDA’s forecasts can move markets, the report is only a snapshot of the most recent conditions during the annual growing season. Mother Nature determines the weather, which can change in the blink of an eye. Droughts, floods, or other natural events can cause significant changes in crop progress and wild price swings in the futures exchanges.
The markets greeted the latest June WASDE report with a yawn, but there is plenty of time for volatility over the coming months as the growing season continues. Moreover, the ongoing war in Ukraine is a significant event as Russia and Ukraine are Europe’s breadbasket, can the Black Sea ports are a critical logistical export hub. War has turned the fertile soil into battlefields and the ports into a warzone. The ongoing conflict pressures other growing regions to increase supplies to compensate for losses from the European agricultural hub.
