Volatility continues to ripple through grain and livestock markets as rising energy prices and outside market pressures drive investor interest in commodities. Total Farm Marketing Senior Market Advisor Bryan Doherty says a sharp rally in crude oil and concerns about fertilizer availability are helping fuel recent price swings in the grain markets. “The big thing right now is just crude oil energy prices shooting higher, concerns with fertilizer, will enough come on board, is it too expensive, will farmers switch to soybeans. So there’s a lot of uncertainty, but I think the biggest thing is there’s just a lot of money that’s found its way into commodities, in particular row crops.” Uncertainty in outside markets is also spilling into the livestock sector, as higher feed costs and broader economic concerns weigh on cattle prices. Doherty says the sharp price swings are also creating marketing opportunities for farmers looking to make catch-up sales on old crop and evaluate pricing strategies for new crop.
