Arlan Suderman tweet:
Prices pulling back ahead of the weekend after large short-covering gains on Thursday. Dynamics largely the same tho. Beans strongest.And that's and understatement! I'm glad for this however, because this will allow me to position a new trade at a better price next week. It appears that grains have finally broken the link to the broader financial markets. While stocks have been skyrocketing, grains have remained in the doldrums for the past few weeks.
Arlan has also mentioned that traders are afraid of new regulations on the futures markets, and this is suppressing prices temporarily. Eventually, however, it will reduce the liquidity pool and make prices both more erratic and will move prices higher. It will also likely lead to shortages, as Arlan has indicated in my previous posts. He says that the cost basis for grains is increasing, especially if Cap and Trade passes, and farmers are planning to reduce production to maintain price levels.
