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Grains monitor energy markets

An ag economist says corn and soybean futures will be monitoring the energy markets in the short-term.

Allendale’s Greg McBride tells Brownfield the conflict with Iran has caused crude oil to have some volatility.

“When it comes to corn, beans, wheat or anything like that, at this time of the year we’re going to be paying attention to weather,” he said. “But you can’t ignore energy sector movement.”

He says a sharply higher surge in oil prices would add a measure of inflation to ag commodities.

“Any sizeable move to the high side or low side should move these grain markets a little bit,” McBride said.

Crude oil continued to slide on Tuesday, down more than 5% at $65 per barrel.

McBride’s full interview with Brownfield can be viewed below.