Price bubbles and commodity markets

Athoughtful new paper from researchers at the University of Illinois marks a significant step forward in research on how commodity futures prices are formed. Until recently, the academic and policy debate about futures price formation has been locked in an acrimonious and polarized standoff between market fundamentalists, who insist all price moves reflect supply-and-demand fundamentals,

Anxiety rises over possible Prairie seeding delays

ICE Futures Canada canola contracts posted good gains during the week ended March 22, as solid end-user demand, the weaker Canadian dollar, a slowdown in farmer selling, bullish technical signals, ongoing concerns over tightening old-crop supplies, new concerns over possible planting delays this spring, and logistical issues moving soybeans out of South America all served


Hedge funds get bullish on corn and natural gas

Hedge funds and other big speculators raised their bullish bets on U.S. commodities for the first time in five weeks, piling mostly into natural gas and corn due to favourable supply-and-demand situations, trade data showed Mar. 15. Natural gas saw close to $2 billion worth of new net long contracts by the so-called money managers

Vitol plans grain market debut, hires Viterra traders

Reuters / Top oil trader Vitol is building a global grains desk and has taken advantage of Glencore’s takeover of Canadian grains giant Viterra to hire a team of its traders, trading sources said Feb. 20. Vitol, which has an annual turnover of nearly $300 billion, will vie for market share along with rival trading


Dock worker strike exposes weak link for Brazilian export powerhouse

The government wants to privatize 
158 ports to attract private investment, 
but workers fear a loss of jobs

Reuters / Dock workers shut down the movement of global commodities through Brazilian ports early Feb. 22 during a six-hour strike to protest the government’s plan to overhaul regulations and put more than 150 terminals in the hands of the private sector. The short-lived work stoppage provided a glimpse of what could turn out to

Consumers, farmers squeezed as grain giants tighten grip

Reuters / A global race for grain trading power is putting more of the world’s vital cereals in the hands of fewer companies, with a string of recent acquisitions raising fears that consumers will pay even more for their food, while farmers are squeezed. Archer Daniels Midland last week bid for Australia’s last independent grain


U.S. futures regulator targets commodity speculation

washington / chicago / reuters The top U.S. futures regulator says he would support appealing a court ruling last month that struck down his agency’s attempt to place limits on speculation in commodity markets. Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission, said his agency drafted the original rule at the direction of

U.S. judge delays efforts to rein in speculators

AU.S. judge has knocked back tough new rules to clamp down on excessive speculation in commodity markets, handing an 11th-hour victory to Wall Street’s biggest banks and angering lawmakers concerned about high prices for gasoline and other raw materials. Just two weeks before the “position limits” rule was to take effect, U.S. District Court Judge



New player in deregulated market

A Southeast Asian agri-food processor and a U.S. commodity trading firm are pairing up to enter the deregulated Prairie grain and oilseed supply chain. Singapore-based Olam International and Kansas City’s Lansing Trade Group have announced a new 50-50 joint venture, Lansing Olam Canada, to “originate and merchandise Canadian grains and oilseeds.” The two companies said