An analyst says a trade war with China could usher in a global recession, setting back commodity prices even more.
Global Commodity Analytics president Mike Zuzolo tells Brownfield a lot of negativity has been factored into the market. But if tariffs remain in place by the July 6th deadline, further downward pressure is likely.
“I wouldn’t exclude the idea of soybeans going back down towards our 2009 levels when they made (new) lows at the height of the financial crisis.”
On the other hand, Zuzolo says there’s a lot of upside potential should a trade war be averted.