We are almost one month into the new year, and we have been seeing a lot of red splotches on the grain markets. That’s not to say there has been a general slide, but it feels like there have been more low days than highs. The markets seem to keep retreating from the highs we have enjoyed over the past years. Anybody in the business knows that you expect ups and downs. They happen. The Market balances itself out after upward and downward swings. There are ebbs and flows, and right now we seem to be ebbing a little bit.
Roland Fumasi is Head of RaboResearch Food & Agriculture for North America. He talks about the retreats we have seen in the markets.
Fumasi says that farmers who planned well and took advantage of the markets are still sitting on liquidity for 2024.
However, the one thing Fumasi is concerned with is how much grain is still sitting on farms that will have to be sold eventually, and the markets will not be friendly when that happens.
Another issue we are seeing is that countries are slowly building their grain stocks and there may be more of a passive trend towards purchases very soon.
Of course, any of this can change at the drop of a hat. Mother Nature and Human Nature are both wild cards in any marketing year.
