Volatility like never before

NORMAL – While we have seen volatile markets in the past, nothing has been quite like we have been witnessing lately.

Curt Kimmel of Bates Commodities says this is kind of like the 1970s when the great grain robbery occurred.

“We had inflation then too,” Kimmel told The Central Illinois Farm Network. “It’s just one thing after another.”

Plenty of uncertainty surrounds grain prices these days, surrounding the situation in Ukraine with the Russian invasion. If you are trying to sell cash grain, the basis has widened since they need more margin to work with.

There was news last week of Russian grain ships moving out of the Black Sea region.

“That kind of limited buying interest in the wheat market,” noted Kimmel.

South American producers are in jeopardy with South America depending on Russia and China for fertilizer needs. Getting available supplies out of that region remains in question.

While a large amount of potash comes out of the Black Sea region, much of our fertilizer in the U.S. comes through Canada.