The grains have lost their gains overnight, after corn reached another new all-time high price. Both soybeans and wheat are lower than yesterday's settlement prices, and corn is barely holding onto a hair-thin gain. A much stronger Dollar and softer crude oil prices are being cited for across-the-board weakness in the grain complex. A statement by Fed Governor Plosser, calling for interest rate hikes as soon as possible, has underpinned the Dollar and led to a good rally. The tit-for-tat between the Fed and the ECB continues. Weather continues to suppress hopes for a good crop yield, and it is therefore bullish for prices over the longer-term.Thursday, June 12, 2008
Stronger Dollar + Weaker Crude = Soft Grain Prices
The grains have lost their gains overnight, after corn reached another new all-time high price. Both soybeans and wheat are lower than yesterday's settlement prices, and corn is barely holding onto a hair-thin gain. A much stronger Dollar and softer crude oil prices are being cited for across-the-board weakness in the grain complex. A statement by Fed Governor Plosser, calling for interest rate hikes as soon as possible, has underpinned the Dollar and led to a good rally. The tit-for-tat between the Fed and the ECB continues. Weather continues to suppress hopes for a good crop yield, and it is therefore bullish for prices over the longer-term.
