Analysts Say Oil, Corn and Gold Are Markets To Watch

March 1, 2019 03:25 PM

This week at the 2019 Commodity Classic, U.S. Farm Report host Tyne Morgan hosted a live taping of U.S. Farm Report. She asked analysts which markets they are most bullish on. Here’s what they said: 

Bob Utterback: “I think I'm most bullish on crude oil. I think crude oil made a major fall last fall. We got below the cost production for domestic producers. So energy costs, I think, are going to move back. Fuel costs are going up. That could be supportive to the soybean market. It's a high correlation between crude oil and soybeans.” 

Bill Biederman: “Well, I think the 10.6% stocks to use ratio in corn, which we've only seen about five times in all of history, is a very constructive situation for corn. I think the bigger picture is that if we do get this trade deal with China, and we see consumer confidence in the U.S. pop back up, you've got a strong case for an inflation hedge. An inflation hedge is basically when funds go in there to buy fuel and food, and the first commodity they buy is corn, because it's basically in everything that we handle and eat. So, I think the corn market and the fuel markets will be the first to go and then it'll be everything else on it.” 

Mark Gold: “I’m gonna say the gold market because we've had a nice rally in here. We backed off a little bit over the last couple of days, but I believe that inflationary cycle is coming back and that tells me that bond prices could certainly, the price of bonds can be going down, interest rates going up and I agree that, I think both corn and soybeans, if we have a trade deal, can move much higher than most people would think. And my fear is that the American farmer sells a little bit too soon and doesn't re-own it with a call option.” 

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