An ag economist says demand for biofuels has added stronger price support for commodities.
Nathan Kauffman with the Kansas City Federal Reserve Bank says prior to the pandemic, commodity prices were expected to remain steady through 2022.
But, he says, that’s changed. “There are underlying sources for demand for agricultural products. That could be exports, but that could also be energy products that we’re talking about that I think put the forecast and prospects for commodity prices on a bit of different level than what we were prior to the pandemic.”
He tells Brownfield while biodiesel and ethanol have helped, there are larger contributors.