What U.S. Farmers Should Expect From Grain Markets After Brexit Vote
Thanks to the news that Great Britain has voted to leave the European Union, the grain and soy markets opened sharply down Friday. By midmorning, November soybean contracts has plunged 26 cents and December corn had slipped more than 12 cents.
The outcome of the Brexit vote also boosted the U.S. dollar, making American commodities more expensive and less competitive on the world market.
The Brexit vote and its impact on the markets “is not the best thing in the world for producers who have been looking for the market to come back,” says Naomi Blohm, senior market adviser at Stewart Peterson. “They have may have missed their pricing opportunity unless USDA comes back with a friendly report. The big rally is probably gone because of Brexit.”
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