Corn Futures Down on Dollar, Inventory

Corn Futures, Dollar, Corn Inventory

Corn futures dropped again as the stronger U.S. dollar made investments and exports unattractive, and the significant global corn inventory has left no base to work from.

As with wheat, as mentioned in my last post, when the prices of grains surged in 2008, farmers seeded huge amounts of wheat, corn, soybeans and rice, which all but assured there would be downward pressure on grain prices in the years ahead.

I'm not sure why the farmers continue to do this, or if they're being told wrongly, but farmers need to understand that if they put huge seedings of crops in the year after a big price increase, they can be sure huge numbers of farmers around the world will do the same.

While there is always the possibility of weather having a devastating impact on some crops, as last year showed, there was so much grain on the market that even when their were droughts or other weather problems, there was so much available it didn't have much of an impact.

With corn this is the story, and will continue to be a bearish story until some farmers drop planting it based on past performance.

Eventually there will be major demand around the world for food, but we are far from that with grains at this time, even though analysts and wealthy investors like Jim Rogers tout food and agriculture in general as a great future investment.

It will be all of that, but when farmers plant far more than global demand warrants, we're always going see downward pressure on corn futures and other grains until it corrects itself.

Corn Futures, Dollar, Corn Inventory

The Reasons behind the Escalating Rice Price

Here's a roundup of the news covering the spike in rice prices and supply.

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Behind the Run on Rice

Despite bumper crops in Vietnam and India, export limits and bans have created a global shortage and driven up prices

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Why have rice prices surged to record highs?

Asian rice prices have almost trebled this year and prices on the Chicago Board of Trade have risen more than 80 percent to hit successive record highs as export restrictions by leading suppliers fuel insecurity over food supplies.

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Rice and Wrong: Food Costs Flummox

Food prices are igniting riots in developing countries -- and quietly claiming a chunk of my family's bottom line.

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Rising price of rice sparks fears over supply, security

The price of rice -- a staple in much of the world -- is rising, bringing with it concerns about food security and worries about possible shortages. In the United States, the two biggest U.S. warehouse retail chains already are limiting purchases of the grain.

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Viet Nam wins rice tender in Philippines

The Philippines has announced auction results for rice supplies in which Viet Nam won with the highest offer of US$1,200 per ton for 100,000 tons of rice.

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Thai rice prices rise again despite CBOT falls

Thai 100 percent B grade white rice, the world's physical benchmark, was quoted higher on Friday, despite a 3 percent fall in rice futures contracts on the Chicago Board of Trade, Thai traders said on Friday.

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