In spring, grain markets were literally and figuratively hit by a perfect storm. Tight supply, aggravated by inflation and weather concerns, propelled futures prices to all-time highs in July. Now comes harvest. Will grain prices come back down to earth?
So much for the afterglow. After an impressive Election Day rally that took the Dow Jones Industrial Average up more than 300 points, the market puked out 928 points in the following two days confronted with a gloomy jobs outlook. Unemployment hit 6.5% and the number of those collecting jobless benefits hit a 25-year high.
In times of economic uncertainty gold prices ordinarily take flight; this process has been suspended, at least temporarily, as the recent flashpoint in the credit crisis has been accompanied by a resurgent greenback.
Drought, food riots and rationing and the influx of long-only funds have set fire to the once sleepy grain markets. Here's a fresh look at the grains and the fundamental factors that are causing grains to double and triple in value.
The title, like the eponymous U.S. television game show, sums up a conundrum. With its stock plummeting and Nymex members threatening to vote no on the CME Group agreement to buy Nymex , CME Group has initiated a $1.1 billion share buyback program.
Many analysts predict a recovery in the U.S. dollar based more on a disbelief in how far the greenback has fallen than on fundamentals. But other currencies are now showing the same signs of stress and a change in direction could be close.