By Blake Haas
BLOOMINGTON – New leadership in the White House could lead to favorable commodity prices in the future amid economic uncertainty, according to one Central Illinois commodity broker.
Speaking with WJBC’s Marc Strauss, Curt Kimmel, with Bates Commodities in Normal, said while the Phase 1 trade deal with China is still intact, President-elect Joe Biden could bring a breath of fresh air to the White House.
“Traditionally, what we often see times is once the election is over, we see the market move lower on ideas that the vote has been made and cast, and we’re in a situation where we bought the vote for the most part. But in this case, the market has hung in there quite well from the standpoint that the Democratic side can make some headway here; there could be some additional stimulus money in the workings.
“The key is there is some new leadership, maybe some new policies, so there’s a little bit of uncertainty, but the uncertainty so far has been price positive.”
Kimmel said with new heads of agriculture in both the Senate and the House of Representatives coming soon, the overall focus needs to be on producers and farmers across the nation.
“The thing is, (they) need to continue to help the producer stay in the position to stay profitable and continue to push grain and corn out of the field. We have some of the cheapest food in the world, and to keep everybody happy and everybody in a positive economic situation, you want to have a situation where you continue to have affordable food and affordable housing.”
LISTEN: Curt Kimmel with Bates Commodities in Normal, told WJBC’s Marc Strauss that President-elect Joe Biden could bring new commodity policies to the White House.
On Tuesday, agricultural commodities rallied after the U.S. Department of Agriculture projected a lower 2021 carryover of wheat, corn, and soybeans, with soybeans seeing their highest levels since early July.
Blake Haas can be reached at Blake.Haas@Cumulus.com.