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| I agree with your assumption re: the growing middle class in Asia. I believe the market will focus on the situation for supplies available over the next 10 months. I have always performed my own research..brought feedgrains & oilseeds up to date this weekend and plan to work on wheat today & tonight. The ethanol deal is a big question mark over here. I recognize the debate over the inefficiency of producing ethanol, except it is an availabe resource & the Western countries have to get in a position to be more self-sufficient as the next Ugly possibility is the supply of oil located in East Europe. An acquaintance, a former tanker broker who spent a lot of time in the USSR, indicates this situation could get real difficult down the road. The problem here is simple. The producers have considerable grind capacity but lack sufficient local storage & the distribution system is not growing very rapidly plus most of the blenders cannot handle unit trains & some never will because of their urban locations. There is a growing belief among traders the ethanol demand is overstated by USDA. Hopefully, if I can schedule my time & still keep my marriage intact, I will have a better feel tomorrow. | |
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world wheat situation
