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| Observation from my $$friend, simply put “demand for grain/oilseeds is larger than its short term ability to produce it!” SA weather does appear that Argentina may get some decent moisture later this week.
He has and is carefully going back into the new crop futures of all crops, I cannot disagree with him, except I feel more comfortable being only in wheat and soybeans. The overnight markets acted orderly and in some respects is better than a series of limit moves. The trend being our friend.
As a side note, Biolux, an Austrian Company has commissioned a biodiesel plant in China, $118 mil. Euros…target is operational in late 2009 using rapeseed. Their observation that the cheap energy era is gone, that rapeseed acreage can increase from the present 6 m. hectares to 20 m. hectares over the next ten years—estimates the current energy demand of 7 mil bbls/day will increase to 17 mm bbls as the country continues to develop.
Edited by SeniorCitizen 1/14/2008 08:20
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Early AM
