Global Commodity Analytics and Consulting President Mike Zuzolo says crude oil and the dollar value are his two biggest economic concerns. “It has a two-fold effect. It has an immediate effect of cutting short the investment flows in commodities and a secondary effect of putting countries like Russia, Brazil and Argentina in a pull position for grains. Fortunately, 2020 looks better than 2019 in terms of competitor’s supplies and what they have available now and heading into the middle of the year.” Global stocks may not be a big or be as available, because of the coronavirus. “If South America can’t process and they have a falling production number, because the weather did clip their production, we’re in a pull position even with a high currency rate.”
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.