The grain markets are expected to remain range bound, at least until the January Supply and Demand report from USDA. Global Commodity Analytics and Consulting President Mike Zuzolo sees a similar market pattern to last year. “That’s especially because of the shift in the Federal Reserve. It’s going to be a cost-push inflation in terms of what drives commodity prices. If we go higher, it will be because of the weather, the supply chain, fertilizer prices and a reduced corn yield because we can’t get inputs applied. It’s an important shift.” Zuzolo thinks some inflationary demand destruction is already happening. “Having said that, one thing I’ve been waiting for is an improvement in wheat exports. Supplies of quality wheat and corn are in tight supplies globally for the next 30 to 60 days.”
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