Economist expects volatile markets in 2021
CoBank’s lead grain and ethanol economist says farmers should expect volatility in grain markets heading into the new year.
Ken Zuckerberg said until recent rallies, cash prices for corn and soybeans were higher than futures prices which he says can have a couple of outcomes…
He tells Brownfield if demand persists until midway through 2021…
“The futures curve may normalize, we may see futures prices melt up and have a more normally shaped futures curve,” Zuckerberg said.
Zuckerberg said the other possibility would affect the cash market.
“Cash prices in the coming months could come down should U.S. planting expectations move up even higher than where they are now [or] if La Nina proves to be softer and less harmful to the Brazil crop,” He said.
Zuckerberg said it’s hard to tell where the market will go but says locking in a portion of profits is a “good strategy.”