As the government shutdown continues, uncertainty is creating "unnecessary bearishness" in the markets, says Mark Gold, Top Third Ag Marketing. Commodity markets, in particular, rely on USDA reports about crop progress and export sales that have been shelved.
"These are all fundamental inputs that traders need to know and farmers need to know to make marketing decisions," Gold tells the U.S. Farm Report Market Roundtable.
A lack of reports also is creating challenges for dairy and livestock markets, says Naomi Blohm, Stewart-Peterson. Beyond the shutdown, recent statements by the U.S. Environmental Protection Agency suggesting changes might be made to the ethanol mandate present another obstacle.
"If this EPA mandate goes through and they actually do say we need less corn toward ethanol, the ending stocks can easily go over 2 billion bushels for the carryout number, and that does really focus on a lower corn price domestically," Blohm says.
Click the play button below to watch Part 1 of the U.S. Farm Report Market Roundtable:
Click the play button below to watch Part 2 of the U.S. Farm Report Market Roundtable: