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U.S. Middle East tensions could create short-term grain marketing opportunities

A senior market advisor with Total Farm Marketing says escalating tensions in the Middle East could provide some marketing opportunities for U.S. farmers in the near-term.

Naomi Blohm says prices moved higher following air strikes in Iran over the weekend, but the rally may be short-lived.

“If South America ends up getting rain, if the conflict in the Middle East gets resolved sooner rather than later, this might be your best price until we get to U.S. summer weather,” she says. “But, the grain markets could be at a short-term high and then slide back a little bit lower during the month of March.”

She tells Brownfield global shipping delays are expected to impact the market.

“If the crude oil market rallies, corn will likely follow,” she says. “The wheat market could also follow because of the amount of wheat that the Middle East imports. Right now, the market is waiting to see if there is further escalation of war news.”

She says prolonged disruption across the Strait of Hormuz could tighten global fertilizer supplies and further influence prices.

AUDIO: Naomi Blohm, Total Farm Marketing