In the last few columns, we’ve focused on sectors that typically see lots of action during the summertime. Most notably, this includes the “grains” (corn, wheat, soybeans), the “softs” (orange juice), and even natural gas. When you have commodities that are so susceptible to weather, you often see dramatic moves in one day, only for it to unwind the next day.
I’d like to focus today’s segment on the markets that typically see heightened activity during the summer months, due to the fact that it’s their prime growing season. Specifically, that means the grains and orange juice markets.
I’d like to focus this week’s segment on the markets that typically see heightened activity during the summer months, due to the fact that it’s their prime growing season. Specifically, that means the grains and orange juice markets.
While the mainstream media has been focused on the run-up in equities, one overlooked sector has turned “red hot,” according to Justice Litle in Taipan Daily. Justice is talking about the grain markets – foodstuffs like corn, wheat, soy and sugar.
Mr. Market has begun to show clear signs of split personality disorder in recent weeks. Now that investors have exhaled in relief that a deflationary apocalypse has been avoided, the new reality of reflation and stagnation is sinking in…
Last night, I had dinner with Gary, an Iowa commodities broker. As we sat down to steaks, Gary told me two large hog businesses had gone under this week in Sioux City. “I saw the banker down at the farm counting livestock heads,” he said. “The banker in this town never leaves his office. It’s the first time he’s ever had to get s**t on his shoes.”
Rice prices have hit new records for a fourth consecutive day after the world’s biggest importer of the grain, the Philippines, said it would be forced to buy 1 million tons of the grain to feed its population.
This from Bloomberg:
Rice, the staple food for half the world, rose as much as 2.9 percent to $21.60 per 100 pounds in Chicago, before paring gains. The price has doubled in the past year.
Major spikes in rice prices and other staples have kicked off food riots in Yemen and Morocco and hoarding in Hong Kong, reports The Washington Post.
As a result of the price hikes Egypt, Cambodia, India and Vietnam have restricted export restricted the export of rice.