In my Q2 Barchart recap of the price action in the grain and oilseed markets, I had the following conclusion about Q3 and beyond:
The leading grains and oilseeds- corn, wheat, and soybean futures are trading at low levels compared to the 2022 highs, but they also display a long-term, multi-decade pattern of higher lows. Population growth means that production must keep pace with the fundamental equations’ ever-expanding demand side for food. Moreover, the increasing demand for biofuel puts additional upward price pressure on the agricultural products. Therefore, I continue to believe that grain and oilseed futures have limited downside and the potential for explosive upside price action. While prices could move over as the 2025 crop year progresses, lower prices could be a buying opportunity for the coming years.
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