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Grain surplus overshadows year of strong demand
A market analyst sees a surplus of corn and soybeans overshadowing a year of strong demand.
Naomi Blohm is senior market advisor with Total Farm Marketing.
“The theme has been bigger production, bigger supply. Demand of course has been fantastic, but we have not had any serious weather threats.”
She tells Brownfield huge global inventories weigh heavily on grain markets.
“The lower prices have spurred demand, but big production, big ending stocks, I’m just quite frankly fearful and mindful that we’re going to go back into a trough of lower grain values for a couple years.”
Blohm says the U.S. produced a lot of bushels in 2024, and improving weather in South America is pointing to bigger production in the Southern Hemisphere as well.
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