Global recession fears amplify as commodity prices fall
We have seen some big drops in crop prices this week and global recession fears are running high once again.
Here are some factors that could contribute to instability in the market:
With record-breaking gas prices, fewer people are out on the road, contributing to lower ethanol demand. As consumers tighten their pocketbooks, meat demand is also going down, creating a smaller need for livestock feed. The U.S. dollar is strengthening, which could limit our export sales. Lastly, dry summer weather is playing a big role in the conditions and prices of grain crops.