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Long-term optimism for commodity markets

An agricultural economist remains optimistic about the long-term future of commodities.

“We may have a hard today, but hopefully that’ll yield easy tomorrows.”

Erik Hoegemeyer, with Midland University, says low commodity prices are a product of surplus supplies, but…

“The good news is, we also are looking at, especially in the corn market, record demand.”  He says, “And I think the U.S. especially is going to continue to push industrial policy to help use that up.”

He tells Brownfield, “I think there are going to be opportunistic rallies, whether it’s the hedge funds who are short going long, or there’s always a seasonal scare, but growers, I think, need to pay very close attention to opportunities to sell.”

Brownfield spoke with Hoegemeyer at the Illinois Fertilizer and Chemical Association’s annual convention in Peoria.

AUDIO: Erik Hoegemeyer – Midland University