(KMAland) — Some analysts are suggesting that as we enter 2026, the U.S. should remain wary of its largest ag trading partner.
Mike Zuzulo, President of Global Commodity Analytics, says we would do well to keep options open when it comes to China.
“I think, generally speaking, the market right now is looking at it as, at a China situation that they think is going to work out okay, especially in the soy complex. I’m dubious of that. I’m worried that the dollar is going to become something that gets bought again in 2026 as a safe haven. That’s something that would probably hurt our exports.”
Zuzulo suggests keeping an eye on crude oil and wheat markets in early ’26.
“The biggest hit, they think, is going to come in the first quarter of 2026, so when we get crude oil and wheat straightened out to where they can find support and the overcapacity-oversupply mindset is no longer with us, I think that’s when we have a lot better look at demand-led rallies, as opposed to weather supply-led rallies, which I think we’re still under right now.”
Commodity analyst Mike Zuzulo.