2011 Price Outlook: Grain Market Comments

If we can assist your operations with a grain market supply/demand inquiry, please contact:

Edgar Hicks

402.884.0066 x111

Market Comments covers weekly developments from Wed. to Tues.

Market Comments: 1/26/11
2011 Price Outlook

With the precarious supply/demand situation approaching this year's planting season, the USDA's Ag Outlook Forum next month will receive its highest visibility yet.

The grain futures market is receiving a lot of press with business media like CNBC, The Wall Street Journal and market pundits presenting commodities as prudent alternative investments.

One major area of concern for us is the effect that industrial uses of commodities are having on food prices. In the 1970's corn (HFCS) was readily received as an alternative to sugar but, by the year 2000, HFCS became a scapegoat for health issues such as obesity.

Learn More at Marketwatch.com

Another area of recent concern is the impact of the Dodd-Frank Act as it relates to the CFTC and listed contracts (futures). The CFTC has proposed 17 rule changes which are open to comment over the next 60 days. We can only hope that any approved changes will be neutral to grain prices.

We believe positions are unique to each person's risk bearing ability, marketing strategy and crop conditions, therefore we give no blanket recommendations. The risk of loss in trading commodities can be substantial, therefore carefully consider whether such trading is suitable for you in light of your financial condition.