So often grain markets take the stairs up, but the elevator down. If you’re getting dizzy watching global trade and global markets racing up and down like a rollercoaster, you’re likely wondering what the impact is of all this volatility.
Craig Klemmer, principal agriculture economist for Farm Credit Canada, joins Shaun Haney for a frank discussion on the risks and opportunities in a volatile market. “We’ve seen a fairly large decline in prices, for sure,” he says, but that’s has been more a reaction to supply and demand dynamics.
Volatility, however, around trade deals and trade disruption, is certainly at play in today’s markets. Historically, volatility is negative for many agriculture markets, but, Klemmer says, when we look back over the last year and then over the last 30 years, there are some sectors that garner some benefit — especially oilseeds.
What happens next? Listen below to the full discussion between Klemmer and Haney: