Factors beyond traditional agricultural market fundamentals are dominating the trade. “It’s not good when you’re worrying about things in the general news; you’re looking at CNN or the Wall Street Journal and you’re hearing about negotiations on getting grain and fertilizer on ships and out of Ukraine and Russia,” said Dan Kowalski, economist, CoBank Knowledge Exchange Division. “Worrying about the rail situation or things we’re reading about Mexico and not importing GMO corn.” That list goes on to include the Russia-Ukraine war, the U.S. elections and inflation. Kowalski spoke at Thursday’s Ag and Food Summit in Minneapolis. Kowalski said he expects the Federal Reserve to continue to increase interest rates in early 2023, but “probably at a much less aggresive basis.”
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