After consecutive years of stagnant commodity prices for some crops, the market has flipped. Double digit price moves in corn seem to be the norm and soybean prices are also non immune to the volatility.
Corn prices climbed more than $1.30 since the beginning of December, and at one point in mid-January, soybean prices hit $14.30, a swing of nearly $3 in just a month’s time.
From lack of volatility to extreme price moves today, some think the volatility may be here to stay.
“I think it’s only going to get more extreme from here on out,” says Chip Nellinger of Blue Reef Agri-Marketing. “I think you’re going to see swings both higher and lower, that’s going to challenge both the bulls and the bears from here on out and, and chew up a lot of speculators’ money. And I think as volatility is only gonna get much more extreme from here on out into summer.”
Much of the rally was demand driven, but can demand continue to support prices in the month’s ahead? Watch the complete U.S. Farm Report marketing discussion with Chip Nellinger and American Farm Bureau chief economist John Newton.
