For the past two years, we have seen extreme market volatility. That has been almost talked to death. However, the causes for the volatility are the topics of interest in any given cycle. Volatility has increased over the past few weeks, but how are these repetitive ?black swan events? shaping the markets at any given time, and what does the near future hold for more of these events?
Preston Zacharias is with CHS Hedging, and the Iowa Agribusiness Radio Network caught up with him at Commodity Classic in New Orleans. The first thing discussed was the impact of the Russian invasion of Ukraine and what it is doing to the wheat markets. Zacharias breaks it down for us.
We have been affected by these repetitive ?black swan? events. Zacharias talks about the drought situation in the Western Cornbelt. While we saw some relief, don?t be surprised by the return of dry conditions, and the worries it brings along.
What about South American weather?
Zacharias says that he is more worried about what even higher prices would mean for consumers, and what producers should think about in these times.
There are a lot of unknowns facing us at the beginning of 2022. It is definitely a smart move to talk with whoever helps you gameplan your strategies for your marketing. Make sure you are managing risk in a way that helps your operation.
