Commodity traders fear recession
An ag economist says commodity traders seem to fear global recession as crop prices have dropped sharply in the last few days.
The University of Missouri’s Ben Brown…
“Less driving so less ethanol use; less meat demand so less feed demand,” Brown said. “I think all those things are coming into the picture.”
He tells Brownfield USDA’s acreage and stocks reports last week should be adding price support.
“Nothing crazy, right,” he said. “Nothing like another shortfall in South America, or let’s say China coming in and buying a whole bunch of corn; without any major demand driver, the picture looks tight for our row crops.”
Corn and wheat futures closed around 30 cents lower Tuesday while soybeans were down 50 to 60 cents.
And he said near-term dry weather could boost crop markets.
Brown said a strengthened U.S. dollar could also limit exports sales in the final two months of the marketing year for corn and soybeans. Brown made his comments during Brownfield’s Weekly Commodity Market Update.