The grain markets have been tanking recently, and that?s almost entirely due to the export competition the U.S. is having with Brazil. While Brazil?s cheaper grain prices have been exerting immense pressure, Allendale commodity broker Greg McBride said that this week?s U.S. Export Sales Report was actually pretty neutral.
There was a period of time where we were seeing consistent flash sales, but McBride said we?re now seeing flash cancellations.
McBride also explained why Brazil?s grains are so much cheaper right now.
The U.S. was already struggling to meet export expectations, and this current situation is obviously making things worse. McBride said we?ll likely see even more cuts in one of the next two WASDE reports.
McBride also provided some advice for Iowa producers.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
