While the COVID-19 pandemic is unlike anything in modern-day history, commodity markets are — perhaps surprisingly — adjusting and adapting to the global market sell-off.
In this interview (recorded Thursday, so keep that in mind on quoted numbers), RealAg Radio host Shaun Haney and Brian Voth with IntelliFarm break down what’s going on in the short term, and how it relates to long-term trends in the commodity markets.
In volatile times, money often flows to the more stable commodities such as gold, or even U.S. dollars — but what Voth is seeing in all the mess right now is that perhaps agriculture commodities will have a softer landing and bounce of the bottom faster than others and most certainly faster than the stock markets.
Voth explains that the COVID-19 sell-off is more extreme than a typical correction; however, grain markets were already cycling lower. Late last week, the markets hit official “bear” territory after losing more than 20 per cent.
As Warren Buffet says, be greedy when people are fearful — in this case, we’re not talking toilet paper (buy what you need, please), but we may see the money that has exited funds will likely, eventually, move to commodities as a more secure investment long-term.
Listen on to Brian Voth and Shaun Haney talking grain market moves, here: