Could we be seeing a bottom in the grain markets? Farm Journal Economist and host of AgriTalk Chip Flory says it looks like it, but it may be hard to tell with the unknowns of the COVID-19 pandemic.
“If it wasn't for everything else that was going on out there, and all I was doing was looking at the charts, I'd say these markets look like they're trying to work on a bottom,” Flory told AgDay anchor Clinton Griffiths on the Farm Journal Live newscast. “That doesn't mean that we're out of the out of the woods on this thing. It still feels like there is going to be a lot of volatility.”
Flory notes that cheap prices in corn, soybeans and wheat have attracted interest from global buyers. He says, however, that continued pressure on ethanol will be a drag on corn.
“We're sitting with unleaded gasoline futures trading under 60 cents a gallon. All the sudden ethanol is the high cost blend component,” Flory said. “We've not been in this situation before. This is this is strange. All of the sudden now we are going to find out what the value of octane is to those refiners.”
Watch Flory’s full analysis and an update on farm labor concerns from Tom Karst of The Packer in today’s Farm Journal Live in the player below: