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Analyst remains optimistic about price recovery

Jan 23, 2019 | 4:45 PM

A market analyst is hopeful grain prices have bottomed out and will move upward this year.

The president of IntelliFARM, Brian Voth, said politics, trade and weather will be key factors in grain markets this coming year.

“Particularly with the U.S., the trade war and implications that has on soybeans and the spillover effect to corn, to wheat, to canola,” Voth said. “But again, a lot of this stuff is priced into the market so going forward I think the fundamental side will start to move a little more. The political stuff is becoming more background noise.”

Voth said the weather in Brazil is hot and dry and that will mean a decline in soybean production.

Weather will have a bigger impact heading into spring.

“In the U.S. we’re probably going to see a big increase in corn acres and a decrease in soybeans given what’s happened over the last year,” Voth said. “As we get into spring, how is the planting pace going, what are conditions like. Weather is always a topic depending what part of the world you’re looking at.”

As for seeding recommendations for the spring, Voths said he always tells clients to “grow what you know.”

 

alice.mcfarlane@jpbg.ca