The current sideways lull in the grain markets has some feeling somewhat uneasy, wondering if the market bumps higher or breaks to the downside. Given the last 18 months, it feels like anything is possible.
But why are the markets trading sideways? Plenty of reasons, says Scott Shellady, host of the Cow Guy Close show on RFD-TV.
From funds moving out of the market, to added risk management, and on to a dearth of volatility-driving news, Shellady says much of the current state of affairs is already worked in to the market.
But change is constant, and there will be things to watch for in the coming weeks and months that will move markets, possibly quickly.
Scott Shellady (Supplied)
That’s important to manage for, he adds, as input prices continue to climb for the ’23 growing season. A looming (or started) recession, climbing interest rates, and cooling land and housing prices all could mean very tight wallets globally — that eventually trickles in to the commodity markets, too.
In this discussion with RealAg Radio host Shaun Haney, Shellady explains how watching what’s happening in the labour market could be a telling signal for the months ahead and how producers can manage some price risk:
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