According to US Bank CoBank the effects from the pandemic and Ukraine war continue to reverberate through the global economy, but the bank also suggests that transportation costs are starting to come down – providing a glimmer of hope.

CoBank’s Knowledge Exchange division released its quarterly report, Clouds are Forming. The economic news is gloomy this quarter with continued effects from the pandemic and Ukraine war.

While food and energy prices are high, commodity prices have lost upward momentum. The drop in commodity prices combined with recent bond yield inversions, are leading to fears about a slowing economy and the risk of a recession.

On the positive side, container shipping has become cheaper but the bank reports conditions for agricultural transport are varied. “While agricultural and energy stocks are tight, shifts in speculative sentiment have brought prices down from their peaks,” the report days. “For agriculture, replenishing global grain and oilseed inventories will require at least two growing seasons.”

The report can be found on the CoBank website.