Play Turner’s Take Ag Marketing Podcast Episode 257

If you are having trouble listening to the podcast, please click here for Turner’s Take Podcast episodes!

New Podcast

Goldman Sachs is calling for a long lasting commodity bull market that will benefit energy, metals, and agriculture.  We are bullish on corn, the soybean complex, and winter wheat. The US will be issuing more debt for stimulus in the aftermath of the coronavirus shutdowns the the rest of the world’s central banks and governments will most likely follow suit.  Ag and the rest of the commodity markets look bright for 2021.  If you want to hear more then take a listen to this week’s Turner’s Take Podcast!

If you are not a subscriber to Turner’s Take Newsletter then text the message TURNER to number 33-777 to try it out for free!  You may also click here to register for Turner’s Take.

Secular Commodity Bull Market

Goldman Sach’s global head of commodity research, Jeffrey Currie, is predicting a long lasting bull market in most commodities.  Crude Oil is breaking out on the charts after nine months of lower production and under investment.  Copper is strong as emerging markets and China find demand in a post COVID economy.  Strong feed demand is supporting corn and the oilseed complex.  Combine economic growth with a weaker USD due to stimulus and new government debt and commodity prices could be on the upswing for years.  You can read more in the link below:

S&P Global Platts | Goldman Sachs’ Currie Predicts Long Lasting Commodity Bull Market

Goldman has a $65 target on crude oil by the end of 2021.  That would match the highs from Dec 2019, right before COVID started to become a concern.  Below is a continuous chart of crude oil with the $65 price target.  A move from $48 to $65 is $17 dollars.  That is $17,000 in the standard 1000 barrel contract or $8,500 in the mini 500 barrel contract.

If you are interested in working with Craig Turner for hedging and marketing, then click here to open an account.  If you are a speculative or online trader then please click here.

Continuous Crude Oil Daily Chart

Corn

US corn is the cheapest feed grain on the global export market.  Below is a chart of US corn vs Matif Maize (Europe) and US Corn vs Black Sea Corn (Ukraine).  US corn at $4.20 is about $210/mt.  Black Sea corn is $230/mt or $4.60/bushel.  Matif is $250/mt or $5.00 per bushel.  US corn is much cheaper than Europe and the Black Sea.  US corn should have strong demand until the South American harvest, At a 1.7 billion to 1.5 billion carryout and superior export price competitiveness, corn will be supported at $4.00 across the board.  A strong demand rally or weather issues in S. America this winter or the US this spring/summer could send old crop to $4.60.

If you are interested in working with Craig Turner for hedging and marketing, then click here to open an account.  If you are a