November 9

11/09 – The ink isn’t dry yet, but it’s certainly not too early to speculate on how a Biden presidency could affect commodity markets for 2021. For starters, a potential thawing of trade relations with China could support corn, wheat, and soybean prices. China is rebuilding its ASF-decimated hog herd and is already a big buyer of U.S. corn and soybeans. The Chinese are also big buyers of U.S. pork. These numbers are likely to increase in 2021. In energy markets, any attempt at new Covid lockdowns would depress gasoline and crude oil demand, weakening prices. However, a more restrictive environmental and regulatory business climate would ultimately lead to tighter supplies and higher prices. WTI crude oil futures plunged from $63.27 per barrel in January, to below zero in April, and are now $37.14 (11/6). So far, crude oil futures for 2021 are averaging $40.17 per barrel.