Surging corn prices likely will have a ripple effect on other agricultural commodities such as...


Surging corn prices likely will have a ripple effect on other agricultural commodities such as wheat, Goldman Sachs says. Wheat feeding will be required to supplement corn use to limit livestock liquidation, the firm believes, resulting in "a smaller wheat-to-corn premium than currently priced into the CBOT future curves."
Comments (1)
  • Glenn Doty
    , contributor
    Comments (1116) | Send Message
     
    Goldman Sachs is just figuring this out?

     

    It's far worse than that. There's a massive drought in the Black Sea region, with expected yields from Russia, Ukraine, and Kazakhstan all looking very low.

     

    Hay harvest has been cut down by ~2/3rd in 9 of the top 10 cattle-producing states, Corn harvest is likely to be less than half of the May estimates, and soy, wheat, oats, and rice are all within the area that is being crushed by drought.

     

    http://seekingalpha.co...

     

    Silage from drought-impacted corn fields provides horrible nourishment for livestock.

     

    This is a BIG deal! The big investment firms (and perhaps the SeekingAlpha editorial team) need to hire someone that understands climate. The magnitude of this was evident nearly a month ago.
    7 Aug 2012, 04:07 PM Reply Like
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