CHICAGO— Grain futures were mostly lower Monday on the Chicago Board of Trade. Wheat for September delivery advanced 15.50 cents to $5.8350 a bushel; September corn was. 5 cent lower at 3.92 a bushel; December oats were 6.50 cents lower at 2.67 a bushel; while November soybeans fell 5 cents to $9.8450 a bushel. August live cattle gained 1.35 cents to $1.4987 a pound;...» Read More
Experts in the corn, wheat and soy markets expect the sharp pullback in recent weeks to be little more than a temporary correction as heavy rain and strong demand cause prices to rebound.
With drought threatening food production in the EU, US and China analysts at Renaissance Capital believe the next 8-10 weeks will be crucial to prices in 2011 and 2012.
Glencore made a speculative bet on rising wheat and corn prices in the early stages of last summer’s Russian drought, when senior traders at the Swiss-based company publicly urged Russia to impose a grain export ban. The FT reports.
Grain prices are going to take almost two years to rebuild, so there's going to be a period of elevated costs, said Farha Aslam, food analyst at Stephens.
If you're looking for action, try grains, but even that may be iffy. It all depends on the weather.