As the election looms, many analysts are curious who the United States will select as its leader for the next four years and how that might affect markets moving forward.
The country is deciding between four more years of President Donald Trump or going with former Vice President Joe Biden. But with corn and soybeans on harvest-time rallies, Jack Scoville of the Price Futures Group said he doesn’t expect too much immediate impact from either outcome.
“It’s going to be the demand that makes the difference,” Scoville said. “I think both Trump and Biden are committed to trying to get some type of stimulus going after the election. I don’t know if there is going to be much of a difference either way.”
The major catalyst for the recent grain rallies is due to exports, Scoville said, and he expects that to hold together no matter who is elected. He said price increases in grain markets should stick around as China continues to make major purchases of U.S. product.
“I haven’t bought much in the way of beans here in the last week, but they did buy some corn a week or so ago,” Scoville said. “As long as the Chinese purchases keep up, we’ll be looking at these higher prices.”
With China being a major factor in the nearly $11 soybeans and over $4 corn prices, Scoville said if those sales start to dry up, prices could start to move lower again. With that in mind, he suggested taking advantage of these prices if possible.
“I think you have to sell a little bit,” Scoville said. “If you are in profitable ranges for your operation, you have to do that. You never know how far this is going to carry. It wasn’t long ago we were talking about corn in the $2 range and beans in the $6 or $7 range.”