NCI Market Update Webinar Series | Featuring Matt Ammerman

Matt Ammermann, Commodity Risk Manager and VP of Eastern Europe/Black Sea Region with StoneX Financial Inc.

The Northern Crops Institute (NCI) hosted another monthly Market Update this past Wednesday, July 20th. This month’s webinar featured speaker Matt Ammermann, a Commodity Risk Manager and Vice President of the Eastern Europe/Black Sea Region with StoneX Financial Inc. – FCM Division.

StoneX is a financial services provider that connects companies, organizations, traders, and investors to the global market system. The FCM Division specifically offers full service, 24-hour futures and options brokerage, clearing, and execution services on all major worldwide commodity exchanges.

Commodity price changes.

Ammermann began his discussion of commodities this month by covering price, which he describes as a function of supply and demand. He listed several factors that affect this vital measurement, including inflation and interest rates. He also discussed the price changes experienced by numerous different commodity classes around the world over the last year, with many experiencing a positive percent change, but with some experiencing a negative percent change.

From there, he focused more specifically on the Black Sea region (Russia, Ukraine, Kazakhstan, & Moldova), which he represents at StoneX. From deteriorating conditions affected by the Russian invasion of the Ukraine earlier this year to the expected worse quality of the crops being harvested during their spring season, Ammermann offered a complete look at commodities in the region. He also shared some other relevant information regarding this region, such as its share of the global agricultural exports and predictions for the region in the coming months.

Ammermann then briefly moved towards the situation in Asia. He spoke about the rising risk of China taking complete control of Taiwan and the potential effects on the commodity markets if this were to go through. Commodity markets would surely be shocked as a result of this change going through, and their buying from the United States would be reduced, among other effects.

Drought map of the United States.

Speaking of the United States, that was where Ammermann took us next. He began with the weather, and how much of the country is in a drought. With little precipitation and higher-than-average temperatures so far this year across much of the West – and expanding towards the East – conditions for growing are more challenging than usual. However, Ammermann pointed out that the forecast is gradually shifting towards cooler and with more precipitation.

He also offered some insight into the demand/supply schedule for U.S. wheat and corn, which reflected the increase in prices Ammermann spoke about earlier. U.S. wheat and corn production was also discussed, as were their average trade estimates. He also broadened these categories to a global scale, comparing different regions of the world on these characteristics and their respective rankings in commodity imports, exports, etc.

Graph of renewable diesel/biodiesel production.

Ammermann then switched gears again, this time towards biodiesel and other renewable diesel production numbers. Biodiesel led the way for production numbers, with these other renewable diesel numbers coming in distant to biodiesels. He also covered soybeans in the global commodity market – their imports, exports, prices, etc. along with the countries that export the largest percentage of the world’s sunflower oil. These are one of the commodities used in producing these biodiesels, hence their importance to this specific usage case.

All in all, Ammermann echoes what other recent Market Update presenters have highlighted as key issues in the global commodity market: atypical weather, higher-than-average prices, etc. These will surely continue to play a vital role in shaping this year’s crop yield and setting this market up for another busy year in 2023.

Northern Crops Institute greatly appreciates Matt Ammermann’s involvement and input in our webinar. At NCI, we continue to work towards fulfilling our mission to support regional agriculture and value-added processing by conducting educational and technical programs that expand and maintain domestic and international markets for northern grown crops. All of this wouldn’t be possible without the innovative ideas of guest speakers like these three individuals.

To watch the recording, click the video below.

For more information about future webinars offered at NCI, click here.