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Ceasefire news boosts ag and energy markets, but uncertainty lingers

Ag and energy markets are reacting to a reported two-week ceasefire in the Middle East.

Compeer Financial economist Dr. Megan Roberts says the announcement from the Trump administration is positive.

“Anything that can be done to continue movement of crucial inputs like fertilizer and oil is a good thing, particularly at this time of year. I would also say there’s still uncertainty.”

She tells Brownfield movement through the Strait of Hormuz benefits the U.S. and global economy.

“My one caveat would be that despite this great news this morning, we still have higher prices on these crucial inputs. And it’s going to take some time to unwind what has been a really fast increase.”

Roberts says urea prices have risen 30 percent in just over a month, but there might be opportunities for farmers if the market softens.