How did geopolitical events impact commodity trading at the end of 2023?
Commodities across the board faced losses as 2023 came to a close, and geopolitical events are to blame.
Chicago corn closed the year down 30 percent, marking the sharpest decline in a decade. Wheat dropped 20 percent last year, with soybeans down 14 percent.
Analysts expect both grains and oil seeds to end a run of several years of price gains due to harvest setbacks, the pandemic, and the war in Ukraine. Tommy Grisafi spoke about the issue on Cow Guy Close.
“I like winners right? And so I like to see the American farmer win. How do you win now that we are under? Maybe it costs then $5.50 Or $5.00 to grow a bushel of corn, and i’ts worth $4.50. That doesn’t mean that that corn bushel is not going to get marketed. It will get marketed, and I have said on this show and others and I’ll say it again, the American farmer will stay in control of their grain whether it goes down a dollar or up a dollar, they will stay in control of their grain.”