Market Recap 07.01.10
Wheat closed up 14.25 usc/bu to 567.25. With Kansas City and Minneapolis also closing up similar amounts, it is easy to see what happened - it is much more difficult to work out why it would make these sorts of moves. Crude was up and the USD was down, but sending up the price of a grain that is already expensive on the world market is not a way to move product. Can we just chalk down any upward movement in wheat this month to "fund rebalancing"? Just try to stop us, at least we can see cause and effect there... Seriously, this year we are going to have to find a better indicator of what is happening in the world grain market than CBOT - so really we could use almost anything. The US Fed have indicated that they won't move interest rates in the nearby, which has hurt the USD, and sent the Aussie higher again... not what we wanted, unless you were looking to buy a Jeep Wrangler or... or... or... something else they still manufacture in the US... There has to be something else...
Date of Publication: 7 Jan 10 9:25am ACST
Source: ABB Grain
