Commodity markets are performing about as expected during the recent global financial market rollercoaster.
There are no specific reasons for the market meltdown, economists say, but the stage was set by China.
China has been a big driver in the global economy, said American Farm Bureau Federation Deputy Chief Economist John Anderson. It’s a huge consumer market, a huge export market and a huge import market.
“The question has always been, how long is that sustainable?” Anderson asked.
The economist told the TFB Radio Network that American agriculture needs to keep an eye on what happens in China and U.S. crop prospects, which look good as harvest approaches.
“We need to be watching our export numbers over the next few weeks and months, and see if we continue to see good global demand for our products,” Anderson said. “Or if that global demand seems to be slipping. That’s going to have a pretty immediate impact on where our commodity markets go.”
Listen to Gary Joiner’s full report on the TFB Radio Network: http://www.texasfarmbureau.org/radio/audio/FOA_090315.mp3