Grain Prices Don't Seem to be Influencing Consumers Yet
It appears that consumers are willing to accept the new, higher price structure for agricultural products. Is this telling us that prices can still go a lot higher?--Pro Trader
The record high prices for commodities don't seem to be effecting consumer shopping habits at this point.
So far, the balance appears to be holding, a University of Illinois Extension grain-marketing specialist said Tuesday. “It’s become a worldwide situation. We haven’t seen any cutback in consumption, and our exports remain strong,” said Darrel Good, referring to a just-released forecast from the U.S. Department of Agriculture of continued growth in demand for U.S. corn, soybeans and wheat in 2008. “There seems to be no immediate end to it,” Good said. Federal projections of a need for more grain and land to grow it contributed to all-time highs in the past week of $5.65 a bushel for corn (July 2009 contracts) and $14.03 per bushel for soybeans (July 2008 contracts) on the Chicago Board of Trade. Spring wheat reached a high of $15 a bushel on the Minneapolis Grain Exchange.
Originally posted at the American Farmer blog.Index Protrader Services
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Might want to check my blog Bill on wheat.
MN wheat closed $24 up $4.75 today
JB
Successful Trading tips dot com
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Good observation, in my opinion!
Indicators can go lower, but a strong trend can keep going. The move up in wheat was obvious, (at least for Chicago wheat)and was a classic example of the simple pattern described in the free report I offer on my website.
I hope the traders who got my report saw it coming because I have been traveling lately and couldn't post it last week.
I regret being out of pocket for a while but I am back and hope to make 2008 better than ever for myself and my subscribers!
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