After a 14.20% decline in 2024, the grain and oilseed sector posted a microscopic 0.05% gain in Q1 2025. I concluded my January 7, 2025, Barchart report on grains and oilseeds in 2024 and where they were heading in 2025 with:
As the worldwide population continues to grow, the demand side of the fundamental equation for the grains and oilseeds that feed and increasingly power the world increases. Producers must keep pace with the rising demand, elevating the potential for shortages when weather, crop diseases, or world events limit output. The odds favor recoveries over the coming year at the current price levels. However, picking bottoms in any market is virtually impossible as prices can fall to illogical, unreasonable, and illogical levels that defy fundamental and technical analysis before reaching bottoms. While the odds favor higher prices from the current levels, the downside risks remain high as the trends remain bearish going into 2025.
