6-28 NWR Financial Jitters

Since the Brits have so far held steadfast to leaving the European Union, as markets all over the world are suffering severe jitters, as gold prices go up due to worldwide economic instability, one might wonder how this will affect agriculture throughout the United States. Lindsey Piegza, chief economist for the Stifel brokerage and investment firm It says that events such as this lead to an unsettling effect that might very well reach the agricultural commodities market. A slow down in the economy, and even a recession could ensue. Rich Nelson, chief strategist for the Allendale commodities brokerage firm advises us not to panic because he does not foresee, in his words, "death and devastation" in the world of finance.

In related news and a little more positive, Lower yields in South America bring the opportunity for expanded U.S. grain exports. The lower forecast for Argentina and Brazil leaves to door open to buyers who traditionally purchase grain from South America. Alvaro Cordero is the U.S. Grains Council manager of global trade. Cordero says the crop forecast for Argentina and Brazil is changing because El Nino reduced yields.