Global factors, like Russia/Ukraine dispute could trigger explosive corn market for 2022
A grain market expert says there are global factors at play that could set an all time high for the corn market this summer.
Matt Bennet with AgMarket.net tells Brownfield 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. 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.”
Tension between Russia and Ukraine has pushed recent volatility in the markets, leading to a spike in winter wheat prices, changes to other key commodities and the fall of financial markets.
Bennet says if disputes between Russia and Ukraine lead to war, it will make shipping grain out of that region both difficult and dangerous.
“The world export business in corn would most likely come towards the US. Yes, there will be corn from South America, no question about it, but the US 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.”
But with high input costs put into the 2022 crop, he cautions farmers not to risk too much waiting on a rally.
Brownfield interviewed Bennet at a Farm Credit Illinois Fielding Forward Crop Insurance Meeting this week in Mt. Vernon, Illinois.