Friday, April 17, 2020

AFBF economist on futures markets hurting


AFBF economist on futures markets hurting

The commodity futures markets have taken a beating. American
Farm Bureau Economist John Newton says numerous it's demand uncertainty about
later this yr and what COVID19 restoration goes to appear to be.

“Nearly in every single place you look, for main commodity
agriculture, aside from wheat and rice, the costs have fallen fairly sharply.
In any occasion, in the event that they haven’t fallen an excessive amount of they nonetheless have numerous
volatility which makes growers advertising and marketing that product very troublesome.”

Newton says livestock futures, dairy and ethanol are hurting,
“June futures for lean hogs have fallen by greater than 50%. June futures for
cattle have fallen by 30%. Could milk costs have fallen between 30 and 40%. And
the ethanol costs have fallen by about 30%.”

Newton says money corn and cotton futures have additionally been laborious hit, “You recognize, numerous cotton is exported, made into clothes. Demand at retailers has just about fallen off a cliff. And, so, cotton costs have fallen by about 30%.”

Previous Post
Next Post