Rabobank analyst: market volatility a theme for 2020
A grain and oilseed analyst with Rabobank says market volatility will likely continue to be a theme in 2020.
Erin Fitzpatrick tells Brownfield the trade war, followed by African Swine Fever and the coronavirus in China has yielded a lot of uncertainty.
“We have lowered our outlook for US trade going to China for the first half of 2020 primarily because of coronavirus. Overall, we do expect that China’s soy meal demand for 2020 will increase, however our growth rates are slower.”
Next, Fitzpatrick says they are watching the bumper soybean crop harvest and corn planting intentions in Brazil.
“Prices are encouraging farmers to plant and invest in the outputs there, so Brazil farmers are still going to be pretty string competitors to US farmers from an export perspective.”
Fitzpatrick says 2019 prevent plant acres potentially coming back into production in the US this year, as well as wet weather predictions for spring are other large factors.
Brownfield interviewed Fitzpatrick at Commodity classic in San Antonio.