2018 A Unique Year For Grain Markets

Looking back at the markets in 2018 is a bit challenging, even for market analysts.  Joe Vaclavik , the owner of Standard Grain in Chicago, said the markets were both up and down this year.

“It was normal in some respects, and very abnormal in other respects.  It was normal in the fact that we had big crops, your corn and soybean crop in particular.  They didn’t do anything total out of the ordinary in terms of seasonality.”

So, what made 2018 abnormal?  Vaclavik said blame the trade war.

“These Chinese tariffs on soybeans in particular, and the damage they have done to the export market and subsequently to the balance sheets, that’s something we haven’t dealt with and that’s kind of an outlier and not something that we see normally.  So, I think from that respect we had a kind of abnormal year.  That’s not something you normally deal with.”

In spite of the outside influences like the Chinese trade dispute, Vaclavik said the markets are basically in the same pattern they’ve been in for the last several years.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com