Conflict in Ukraine Could Create Huge Corn Market
A grain market expert says global circumstances could lead to an all-time high for the corn market this summer.
Matt Bennet with AgMarket.net said there are tight carryouts for both corn and soybeans.
“There are other commodities that really want the acreage so we may not get as many acres as some people in the industry are hoping we will see,” he said. “If we don’t get big acres and big production given that our carryouts are already tight, I am telling you it could be a very dynamic market.”
Instability in Eastern Europe has led to a spike in winter wheat prices and changes to other key commodities as well as the fall of financial markets. If tensions lead to war, shipping grain out of that region will be difficult and dangerous.
“The world export business in corn would most likely come toward the U.S. Yes, there will be corn from South America, no question about it, but the U.S. could get the lion’s share of this business moving forward, and if that is the case, and you limit carryout even more than it already is, it could set an all-time high in the corn market this summer.”
Source: Brownfield Ag News