News
Markets react negatively to EPA Renewable Fuel Standard announcement
A market analyst says grain markets were quick to react to announcements made during White House’s Great American Agriculture Celebration on Friday.
“Immediately, the markets are down, they are not reacting positively at all.”
Angie Setzer with Consus Ag Consulting tells Brownfield, “It’s difficult to completely assess whether there’s disappointment in the announcement, or it’s just the fact that you stay too long in these markets, you turn into a pumpkin.”
While the proposal would be the largest in the history of the program, Setzer says, “I don’t know if we have a sort of buy the rumor, sell the facts type situation where potentially folks were hoping that the administration would come in and say, ‘Yeah, we did come out with an initial number that was very stout, but we’re going to make it even more stout.’”
On Tuesday, USDA will release its March Prospective Planting Report and Quarterly Grain Stocks Report.
Setzer says the stocks report will likely drive market direction this week, but its impact could be limited given all the other factors affecting farm margins.
Add Comment