CoBank anticipates tight grain stocks and volatility for years
An economist with CoBank says the Russian invasion of Ukraine will impact grain stocks and prices for years.
Kenneth Zuckerberg tells Brownfield the global grain markets have been managing through a period of extreme volatility, especially in the past month. “While markets have calmed down a little bit, we see very tight stocks-to-use and price volatility for both wheat and corn lasting for at least two growing seasons.”
Zuckerberg recently issued a CoBank report on how the war is impacting grains in the Black Sea region, and what that means for U.S. wheat and corn. He also says other world influences are affecting the soybean complex. “The Brazil crop was poorer than expected so the U.S. has the opportunity to make up some market share, at least in the near term. Second, the biodiesel and the renewable diesel, that is a long-term interesting demand driver for soybeans.”
Zuckerberg says even with high fertilizer costs, many U.S. farmers did not convert many corn acres to soybeans after penciling out profit potential.