News

Suderman says China overshadowing markets

A market analyst says the China trade war is the main, overshadowing factor for the bearish commodity market because of how China is targeting agriculture, “The commodities do not have, at this point, from the day that they’ve been presented anything to argue against that. And the Midwest Crop Tour this week failed to show small enough crops to convince the markets that we’re going to run out of grain and oilseeds any time soon.”

Arlan Suderman with INTL F-C Stone says China’s announcement today that it’s adding more tariffs to U.S. commodities further escalates the trade war, “China dramatically slowed their purchases anyway. The amount of the tariff matters less than the fact that buyers are afraid to do business with the United States in this current environment.”

Suderman says producers need to manage their risk exposure knowing that prices can go lower than maybe is fundamentally justified and they need to be able to protect against that.