Markets Await Clarity on Potential Iran Ag Purchases

A market analyst says it remains to be seen if Iran begins to make purchases of U.S. ag goods.

Jim McCormick is with AgMarket.Net and says, “That’s the hard part about it, we’re dealing with a country we haven’t traded with for 30 to 40 years. So how do you assess the reliability of it.”

President Trump recently said the U.S. could look to unfreeze some Iranian funds that would be used to buy some U.S. agricultural products.

McCormick tells Brownfield Ag News that the market hasn’t paid much attention to the issue. “I think how you look at the marketplace is as a producer, if you can get Iran to come in and buy, I think that’s a bonus. The market would react positively to it. But right now, the market has shown incredible skepticism that any deals are going to get done.” He says the market hasn’t factored that into commodity prices yet.

EDITOR’S TAKE:

Sure, there may be potential, but when and where does it begin to come to fruition? That is a tough question to answer with all the continuing uncertainty surrounding the on-going negotiations with Iran. It all means little until the orders are placed and ships or planes are loaded, which would be reflected in higher prices in the market. We know the demand is there. We have the supply, but the question is when or if it will ever happen…. Stay tuned!

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