Ag Markets and Geopolitical

Brian Irey, Crossroads Co-Op Regional Manager and Ag Marketing Expert, provides an update on geopolitical developments with a focus on the ongoing Russia, Ukraine War and its impact on the ag markets, particularly on the wheat.

“Zelensky said that he's willing to swap some certain territories of Ukraine for Russian territories. And I think that maybe got the market a little nervous, on the wheat side, that that situation could be coming to an end. I don't think long-term. It's probably long-term more negative than it is short-term negative. They're still in a drought over there in both Russia and Ukraine, as far as wheat goes, as both countries would get back to normal, especially Ukraine, it certainly is going to put more wheat on the export market.”

The other issue affecting markets is tariffs.

“A lot of volatility in the markets over what's going on here domestically with the imposition of tariffs on certain countries and what the implications of those may be. We still have an issue to resolve with China, which has not bought any us feed grains to speak of this year. They have been aggressive buyers of soybeans. We're seeing that shift to Argentina now that harvest is coming off down there, but no feed grains out of the US.”

Irey anticipates a critical discussion between the Chinese President Xi and President Trump to address key trade concerns.