We often say that uncertainty is the lifeblood of commodity futures markets. The greater its perceived level, the greater is the degree of price volatility. Any economic sector that heavily depends on weather (e.g., the production of agricultural commodities) is guaranteed a relatively high degree of uncertainty and accompanying volatility. Since many of today’s noncommercial managed funds are essentially market momentum followers, they often add to or expand weather-related price volatility. There is always uncertainty pertaining to questions about fundamental supply and demand. In recent years, there have been relatively more questions about demand since supplies were generally deemed to be at least ample and often more than ample...

TAGS – Feed Grains, Soy & Oilseeds, Wheat, Australia, Black Sea, China, Europe