The market shakeup is likely far from over
Russia’s invasion of Ukraine continues to shake up the markets and the chief economist for the USDA says the disruption is far from over.
“There are probably issues beyond just the initial response in grain prices that we’ll want to consider.”
USDA’s Seth Meyer told attendees of the Ag Outlook Forum it’s still too early to fully understand how global trade will be impacted.
During an interview with Brownfield, Meyer said there are a lot of areas to consider. “First order effects in terms of trade, grains, oils and some other commodities, right? But then there are second order effects in terms of energy prices, natural gas supplies and natural gas supplies to Europe.”
And, he says, another area to watch is how consumers respond to the reaction from the global economy. “Do they get more anxious? What does demand look like? You can envision this working sever different ways on U.S. producers’ prices.”
Thursday, the White House announced it was working with other G7 nations to place economic sanctions on Russia’s leading financial institutions, including the state held agricultural lender and a major energy company.