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Possible silver lining coming amid low grain prices

The senior market advisor for Total Farm Marketing says farmers should expect low short-term grain prices but the long-term outlook could trend upward. 

Naomi Blohm tells Brownfield an expected near record crop is negatively impacting grain prices but there is a silver lining… 

“The value of the U.S. dollar, which has been inching lower for about the past four months,” she said.

Blohm said exports from the U.S. become cheaper for other countries because of exchange rates as the dollar loses value, which leads to increased trade. 

She said if the dollar continues to trend downward it could be beneficial as the U.S. and China enter trade discussions on the 15th

“If China actually buys what they’re supposed to buy for the phase one deal, that’s not priced into the market yet, and that could be new demand to get us out of this glut of lower prices,” she said.

But Blohm said there is significant down-side potential for grain prices in the short-term if exports don’t pick up. 

Blohm said December corn futures are trading just above $3.20 but if the USDA supply and demand report released on August 12th shows decreased demand, December contracts could fall to $2.90.  

She said soybeans currently have support through the November contract above $8.70. 

Naomi Blohm Interview

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