traderdannorcini.blogspot.ca / By Dan Norcini / Tuesday, August 21, 2012
Word out of the crop tour this AM has sent both corn and soybean prices strongly higher dragging wheat along for the ride.
The supply seems to keep shrinking as each successive yield estimate comes in with a lower number. Once the market comes to grip with the actual supply number for this year, the focus will shift to the demand side of the equation and whether or not the market is doing its job of rationing supplies.
One thing is for certain – we, the consumer, are going to be reeling at the grocery store very soon.
Take a look at my Grain Composite Index – if you thought grain prices were high back at the peak of the commodity bubble in 2008, you ain’t seen nuthin’ yet! The Index is firmly above that level.
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