StoneX: How long can these prices last?
October 27, 2020 By Julie Harker Filed Under: Crops, News
The big question in grain markets right now is – how long will prices last? Matt Snell, risk management consultant with Stone X, says prices are very much demand-driven, most notably from China, wand are much higher than anyone would have ever imagined.
Snell says there are still tensions between the U.S. and China, so it’s tough to know.
“You would think at some point they would have started pulling back demand out of spite or something along those lines. So, a really big question remains, are they hoarding these supplies for another round of COVID or just to make sure they have them in case we do extend things in the trade war?”
Snell says there are opportunities for growers in the coming months, “I’d be looking at putting caps on and just protect my worst case scenario and see what they heck happens because, honestly, we could easily be at $5.00 corn or $3.50 corn in the next six months. A lot of it just depends on so many unknown factors.”
Snell says to make sure there’s a plan in place and know what the margins are. Snell spoke on a StoneX webinar Tuesday.
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