What Are The Fundamental Players In The Commodity Market?
There are three things to think about when look at the commodity prices when it comes to farmland. US supply, US demand and the US economy.
US Supply
This is production and potential production. Both have an affect on the market.
US Demand
A good example of this is ethanol. That has become a very popular source of fuel recently and has really driven then corn demand in this country.
US Economy
As long as the U.S. dollar is strong so will the marketplace for US crops abroad.
Corn is the Market Leader!
With the strong push for ethanol corn has exploded on the US market recently. It should continue to do so for the foreseeable future.
Weather Will Always Trump!
With all these things that go into what affects commodities, nothing affects it more than the weather. Keep an eye on the forecasts in the area of your farm. If you truly want to know what the future of commodity prices are just look to the sky.
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