Analyst expects market volatility to continue in 2022


Analyst expects market volatility to continue in 2022

A market analyst expects another volatile year for corn and soybeans.

AgriVisor senior commodity risk analyst Karl Setzer says 2022 could start with a bang when USDA releases new supply and demand estimates January 12th.

“And in January, those (reports) also contain our final production numbers for last year. So we’ll see those updates, as well as the quarterly stocks. I expect volatility to build up to then.”

And once the market digests that report, he tells Brownfield the South American harvest will be front and center.

“And before we know it, we’re going to be looking at the U.S. planting season starting to pick up a little bit in deep southern states. Then we’re back in that cycle again where we’re watching U.S. weather. And we haven’t even talked about the input costs and what they could mean for acres coming this year.”

Setzer says he can almost guarantee elevated volatility again in 2022 with wide price swings and cautions growers to be prepared.