Rain continues to soak the grain belt of the United States, further delaying planting. Corn is particularly vulnerable, and delays tend to favor soybeans being planted instead. That is medium-term bullish for corn prices and bearish for soybeans. However, the strength of the Dollar this morning appears to be the dominant story for the short term, and is resulting in all the grains moving lower for the time being. Wheat has been on a definite downtrend for the past month or more, and with the global shortages of wheat, prices must eventually stabilize with this fact supporting prices. Australia, after two years of drought, is having a more normal rain pattern this year, and the wheat harvest appears to be more likely to increase global stocks.Thursday, April 24, 2008
Grains Soft, Even With Weather Problems
Rain continues to soak the grain belt of the United States, further delaying planting. Corn is particularly vulnerable, and delays tend to favor soybeans being planted instead. That is medium-term bullish for corn prices and bearish for soybeans. However, the strength of the Dollar this morning appears to be the dominant story for the short term, and is resulting in all the grains moving lower for the time being. Wheat has been on a definite downtrend for the past month or more, and with the global shortages of wheat, prices must eventually stabilize with this fact supporting prices. Australia, after two years of drought, is having a more normal rain pattern this year, and the wheat harvest appears to be more likely to increase global stocks.
