Minnesota Broker: Someone is Keeping Lid on U.S. Grain Prices [Listen]
It was another week of frustration for corn and soybean farmers in the U.S. wondering why grain prices are much higher in virtually every other country compared to here? Technically the corn and bean charts closed Friday looking okay. However, they were looking really good until we sold off late in the session and closed slightly lower.
Commodity Broker Gordy Kralovetz with Chiodo Commodities said it is like someone or something has decided to keep a lid on our grain prices while they are sharply higher in other countries. Is it China, the commercial elevators and exporters, the funds? The CFTC Commitment of Traders Report shows it is not the funds (if the report is accurate) so then who and for what reason?
Gordy thinks and it seems logical that the longer corn and bean prices are low the more farmers will sell grain before it goes higher. It worked last summer and fall so why wouldn't it work this fall too? It sure could be worse because we have to remember we still have cash corn at $5 a bushel and beans almost $12. However, given the shortages around the world and basis levels it sure seems like they should be much higher? Click on the link and listen to Gordy discuss the market action last week.