Markets Closed Yesterday for Martin Luther King Day

Markets Closed Yesterday for Martin Luther King Day

There no market prices to report on today due to yesterday's close of the commodity markets for Martin Luther King Holiday. Instead we will visit with Dr. Dave Kohl, Globetrotting Emeritus ag econ professor from Virginia Tech about the BRICS and KIMT nations and how the cooling of their economy affects our grain prices. For point of reference BRICS -- stands for Brazil, Russia, India, China and South Africa and the subset of KIMTs -- represents South Korea, Indonesia, Mexico and Turkey

Kohl: "One of the things is that these BRICS and the KIMTS which has really fueled the supercyle in the grain market - she is subsiding and the results are you are starting to seeing the commodity prices -- whether it is corn, soybean or wheat but also you are starting to see copper subside, steel subside as well. So the grain industry is definitely in an economic transition -- it will be interesting to see if it is a blip or it is a continued trend that is directly linked to these emerging nations."

Kohl shares more details about China's economic situation.

Kohl: "China -- which makes up to half of the economies of the BRICS and the KIMTs --has slowed from a 10.5 percent growth rate to a 7.5 percent. While 7.5 percent would be relished here in the United States, that is actually a slow down in the second largest economy in the world."

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