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Theodore, Saskatchewan | Thanks John. IMHO there is something very interesting about this rally in grains compared to 2008, it is fueled by food for animals and not food for people. In 2008 the largest moves were in wheat and soybean oil. This time it is soybean meal and corn.
If indeed the market signals are distorted by having a market move sideways then energy will be built for a larger move in the future.
"In Siberia and Central Asia, a combination of drought, forest fires and heat waves have slashed the Russian harvest 33 percent. For Russia, this is the worst crop since the disasters of the 1960s forced them to start spending scarce foreign currency on buying U.S. wheat. "
And yet wheat prices are lower today than 2011....... | |
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Food crisis article
