Markets Now: Volatility Is Here To Stay In 2018

6/16/18 Markets Now
Major exports leave USDA export ships. ( Farm Journal Media )

Soybean prices took a tumble on Friday as President Trump announced he would follow through on putting tariffs of up to 25 percent on $50 billion of Chinese goods.

Beijing fired back, and plans to put tariffs on U.S. products including soybeans, beef, orange juice and whiskey, which would go into effect July 6.

This market volatility in 2018 could be seen as refreshing to some after coming off a record-low volatility year in 2017.

“Volatility in ag is not going away in 2018,” said Craig VanDyke, risk management specialist with Top Third Ag Marketing. “Never be a deer in the headlights when you see these types of markets.”

The opportunity this volatility provides lies with basis, said Brian Roach, president of Roach Ag Marketing, Ltd.

“There’s big basis out there and that’s going to get basis opportunities—maybe more so on corn,” said Roach.

Hear what Roach says the silver lining is in this situation, and VanDyke’s take on if we underestimate the potential of crops on Markets Now on U.S. Farm Report above.