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Economists expect grain market volatility to continue

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Economists expect grain market volatility to continue

Agricultural economists say USDA’s recent supply and demand forecasts are positive for corn producers due to tighter estimates of final inventories of old crop corn.

Ben Brown of the University of Missouri Institute for Food and Agriculture Policy told Brownfield that the corn market is likely to remain volatile.

“When I say volatile, I fall 20-25 cents a day, fall 20 cents the next day, and then rise 10 cents,” he said. “So we’ll see these fluctuations in the corn market until the weather gets better and we know what the summer growing season will be like.”

Brown said the report had hit nearby soybean contracts on Thursday, but increased new crop soybean contracts.

“This just shows that the deal was surprised by the reduction in soybean crushing numbers,” he said. “Furthermore, looking at the take-out of old crop soybeans, it was slightly above where the trade expected that day.”

He said global soybean final inventories exceeded traders’ expectations, but new crop soybean final inventories remain tight. Brown said the USDA’s June acreage report would require more soybean acreage to continue to support the market.



Economists expect grain market volatility to continue

https://brownfieldagnews.com/news/economist-expects-continued-grain-market-volatility/ Economists expect grain market volatility to continue

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