Farmers find themselves in a back-and-forth battle with their wallets as inflation and markets are both on the rise. While higher commodity prices are good for their wallets, the increasing consumer good prices are not. So, what does this mean for farmers on a producer and consumer level? Allendale Commodity Broker Greg McBride talks about how inflation is one of the many factors controlling the markets. He notes that, we need to find a way to tamp down the inflation, but continue to watch those equity numbers, whether they rise or fall and what impact that has on those markets.
McBride talks about the numbers in the soybean market specifically in the June and July contracts. He mentions how farmers have no carry in this market. It is a demand driven market and building an inverse or carry can either make those markets skyrocket or fall out as weather comes into play.
As fat cattle are at lower prices due to supply being high, feeder cattle are on a whole different market with those low prices starting to rise says McBride. He notes that, with the fluctuating hog prices, it?s really anyone?s game.
For more information, call Allendale at (800)-262-7538.
