RJA - Are We On The Cusp Of A New Agricultural Revolution?
Point of interest, Andrew put a story out also on Twitter on July 3rd that he mentions in the article below. This was his first mention of the Dakota's drought. I posted it at Twitter on July 1st. He has not posted about Dicama yet, hope he sees my post and does. He has much more clout than little me, lol.
He adds the increasing world population as a good reason for food prices to grow.
Chart in link
https://seekingalpha.com/article/4086794-cusp...revolution
Summary
Other grains rally then wheat leads soybeans and corn to the upside.
20 million more mouths to feed each quarter.
The July WASDE will continue to highlight demand.
The dollar provides support for U.S.exports.
Resistance levels and the weather.
Since the drought in 2012 that ravaged crops and sent the prices of grains soaring, in some cases to all-time highs, the prices of soybeans, corn, wheat, and other grains had been in bear markets. Prices had declined to half the levels seen in 2012 and inventories grew to record levels. Each year is a new adventure in the grain markets as the ultimate arbiter of prices is weather during the planting, growing, and harvest seasons. Over the four-year period from 2013-2016, bumper crop yields have more than satisfied global demand which sent prices to multiyear lows.
Each year, the uncertainty at the beginning of the planting and growing season caused some temporary price appreciation in the grain sector, but the final tallies when it came to supplies over the past four years wound up having a bearish impact on prices. At the end of June, the scare of 2017 caused the prices of all grains to move to the upside. While wheat rallied at the end of June and corn and soybeans followed, other grain markets displayed signs that 2017 may be different than the past four years.
The one constant in the grain markets has been increasing demand which is a function of global population growth. However, consumers have become complacent since 2012 and most have abandoned hedging opting for a hand-to-mouth approach for buying requirements in the grain sector. In 2017, they could wind up regretting that strategy given the recent price action in the grain markets.
Other grains rally then wheat leads soybeans and corn to the upside
The price of oats was the first to display a bullish trading pattern in the grain sector.
Point of interest, Andrew put a story out also on Twitter on July 3rd that he mentions in the article below. This was his first mention of the Dakota's drought. I posted it at Twitter on July 1st. He has not posted about Dicama yet, hope he sees my post and does. He has much more clout than little me, lol.
He adds the increasing world population as a good reason for food prices to grow.
Chart in link
https://seekingalpha.com/article/4086794-cusp...revolution
Summary
Other grains rally then wheat leads soybeans and corn to the upside.
20 million more mouths to feed each quarter.
The July WASDE will continue to highlight demand.
The dollar provides support for U.S.exports.
Resistance levels and the weather.
Since the drought in 2012 that ravaged crops and sent the prices of grains soaring, in some cases to all-time highs, the prices of soybeans, corn, wheat, and other grains had been in bear markets. Prices had declined to half the levels seen in 2012 and inventories grew to record levels. Each year is a new adventure in the grain markets as the ultimate arbiter of prices is weather during the planting, growing, and harvest seasons. Over the four-year period from 2013-2016, bumper crop yields have more than satisfied global demand which sent prices to multiyear lows.
Each year, the uncertainty at the beginning of the planting and growing season caused some temporary price appreciation in the grain sector, but the final tallies when it came to supplies over the past four years wound up having a bearish impact on prices. At the end of June, the scare of 2017 caused the prices of all grains to move to the upside. While wheat rallied at the end of June and corn and soybeans followed, other grain markets displayed signs that 2017 may be different than the past four years.
The one constant in the grain markets has been increasing demand which is a function of global population growth. However, consumers have become complacent since 2012 and most have abandoned hedging opting for a hand-to-mouth approach for buying requirements in the grain sector. In 2017, they could wind up regretting that strategy given the recent price action in the grain markets.
Other grains rally then wheat leads soybeans and corn to the upside
The price of oats was the first to display a bullish trading pattern in the grain sector.
