The major pressuring factors for commodity\nprices amid the pandemic were the strong appreciation of the dollar and the cut\nin potential demand. The decline in crude oil prices, the effect on the ethanol\nand food industries, the risk of a global recession with widespread cuts in demand,\nand a very strong dollar were indicators that served to put pressure on\nagricultural commodities, including corn. Now, this environment is starting to\nchange positively, and some effects on corn prices may appear in the coming few\nweeks. The point of contention is the ongoing harvest in the United States,\nin excellent conditions so far and suggesting a record production. Concerns over\nthe exchange rate policy in Argentina\nare the factors that could benefit Brazil in the second half of the\nyear.<\/p>\n\n\n\n
This international currency movement\nis very important for commodity prices from now on. A weaker dollar and\nreasonable increase in global liquidity can trigger a price surge for\ncommodities. In these movements of high liquidity and weak dollar, the dollar\nprices of commodities end up gaining strength regardless of their supply and\ndemand. Of course, we will need an aggressive resumption of global demand and\nall other economic factors such as recovery in growth and employment.<\/p>\n\n\n\n
Crude oil prices aligned at USD 40 a barrel again, closer to\nthe pre-coronavirus period, when prices were between USD 50\/60 a barrel. A\nresumption of U.S.\neconomic activity would bring fuel demand back to a better level, which\nprovides support to the ethanol industry to restore production. This would improve\nthe short-term demand environment for corn, and this better flow could help\nprices to have volatility between USD 3.20 and 3.45 a bushel on the Chicago\nBoard of Trade.<\/p>\n","protected":false},"excerpt":{"rendered":"
The major pressuring factors for commodity prices amid the pandemic were the strong appreciation of the dollar and the cut in potential demand. The decline in crude oil prices, the effect on the ethanol and food industries, the risk of a global recession with widespread cuts in demand, and a very strong dollar were indicators […]<\/p>\n","protected":false},"author":5,"featured_media":9094,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[102],"tags":[],"commodity":[],"class_list":["post-15551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agribusiness-en"],"acf":[],"yoast_head":"\n