~~2016 starts out mixed.
The first full week of 2016 has certainly been full of surprises with the Chinese stock market closing down 7% several times, once within 12 minutes of opening. The Dow followed by closing down over 300 points. The global economic fundamentals are weak at best even though the United States seemed to show growth in jobs and strength in overall economic news. So what does this mean for the grain market?
With global economic weakness, the fundamentals look bearish for the grain markets. With slow global growth it will be difficult for demand to increase. Add to this sufficient supply in most countries and a strong U.S. Dollar, it will be difficult to see any increase in demand for our products.
2016 is not looking promising for any large bounce in price unless some form of weather event at spring plantings or pollination is seen. The potential for large profits is gone and one must look for strategies to break even or the potential to protect any further loss.
Now is when producers should be discussing 2016 strategies with their respective broker. If you have questions and would like to discuss 2016 marketing strategies, call Bob or Laura (1-800-832-1488). If you have questions, we welcome emails to [email protected] or [email protected].
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