Could area grain farmers see a modest price rally for commodities during the spring? Chad Hart ISU Extension Specialist says this year is looking very much like last year, and farmers will need to strike while they can to capitalize on any potential price rally.
Analysts believe the South American crop production will also be good this year, but Hart says it, too, is resembling last year when flooding damaged some of the crops. That’s already showing up in the markets.
The Iowa State University Extension Grain Marketing Specialist says producers, and trading partners are watching closely the actions of the Trump administration on trade, as it will play a big factor in the prices as well.
So much of U-S agricultural trade depends on the value of the dollar in foreign nations. Hart says the value of the dollar has been on the increase, however, trading partners have not been deterred from purchasing U-S grown commodities.
Hart suggests farmers to look at perhaps conducting some forward contracting to take advantage of price rallies when they occur.