A market analyst sees the latest coronavirus relief package and its influence on the U.S. Dollar having both short and longer-term impacts on crop and livestock prices.
Mike Zuzolo with Global Commodity Analytics tells Brownfield the prospect of $2,000 stimulus checks to Americans has jolted the currency markets and pushed more inflation expectations.
“And therefore a risk-on rally into the equities, into the currencies, and into the commodities as well. So you do have fresh news and fundamental factors that are feeding the bull.”
He says with an inflationary injection of stimulus checks going into the economy at a time when grain prices are strong, the livestock sector could respond with lower weights, higher prices, and demand rationing during the first half of 2021.
