These days we can sympathize with commercial grain and soy traders and fund managers as they try to figure out what futures prices and cash prices are likely to do and equally important, why they will do it. This is never an easy task, but currently it seems to us that there are more than the usual number of loose threads to be tied up into the ball of yarn that is today’s market. The history of commodity markets and their price action is the history of the relationship between supply and demand. That relationship can be temporally obscured or even subverted by political activity, economic issues, or other macro factors. But the supply/demand relationship as the market’s driver always re-emerges sooner or later. One of the pro...

TAGS – Feed Grains, Soy & Oilseeds, Wheat, China, North America, Macroeconomics