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Broker expects export demand to drive markets

A commodity broker says he expects export demand to be a major market influencer in the coming months.

Mark Talaski with Advanced Trading tells Brownfield tight global corn supplies and strong demand have the potential to increase exports and prices.

“We kind of think they could increase it another 75 to 100 million (bushels) going forward,” he says. “That’s a bright spot. We at least have a good demand. Maybe cheap prices have kind of cured the cheap prices to some degree.”

Soybeans and corn closed solidly higher Friday following increases in USDA production totals in the latest supply and demand report.

He says farmers have been selling more corn after harvest compared to the prior year and locking in better margins.

“I think that the producer maybe responded a little differently, knowing how the last year played out and got a little more aggressive on staying ahead of sales,” he shares. “Corn net of basis and futures is higher than it was at fall so they could have captured that opportunity.”

Talaski says he’s also following the HPAI outbreak and the demand repercussions it could have throughout the supply chain.

Brownfield interviewed Talaski during this week’s Michigan Agri-Business Association Winter Conference in Lansing.