Economist says grain market volatility doesn’t have an end in sight
An ag economist expects volatility in the grain markets to continue into 2023.
Dr. Dan O’Brien with KSU tells Brownfield despite a recent downturn in the markets, there’s good news. “We’re optimistic for prices relative to where we were a year or two ago,” he says. “We still have a lot of volatility figuring out how we land these markets coming off of fall harvest.”
He says geopolitical conflicts and a La Nina weather pattern have contributed to tight ending stocks. “We’re going to go into next year with tight beginning stocks and probably very responsive, very worried and probably have volatile grain markets to any weather risk that might come along.”
O’Brien says another run-up is possible, but prices could decline next summer. “But heading off into next year, we’ll try to push it. We’ll try to recover and rebuild stocks. We have fertilizer and weather issues standing in our way.”
And, he says, tensions with China and Taiwan will add even more volatility to global markets
Brownfield interviewed O’Brien at the KSU Risk and Profit Conference.
Dr. Dan O’Brien: