Will A World Wheat Contract Replace CBOT Futures?

“The market is going to take care of itself, the banking system will be back in order, the risk management of the grain companies will be back in order, and everybody is not going to be terrified.” – GLENN HOLLANDER Is the grain industry ready for a world wheat futures contract? A year-long campaign to

After worst year ever, commodities may lag recovery

“Confidence in the commodity market… would start to be restored when we start to see a rebound in equity markets again.” – Mark Pervan, Australia and New Zealand Bank Research Commodities, until six months ago the darling of investors and an outperforming asset class, sealed their worst year on record with accelerating losses in the


Commodity traders grow weary of market swings

“Everybody got run over by the bus going east. They got up only to be run over by the bus going west.” – CME TRADER GARY LARK From his desk alongside the Chicago Mercantile Exchange (CME) trading floor, Jim Brooks is seeing more ill-tempered cattle and hog traders nowadays as they cope with fast-moving markets

Volatile farm prices a worry

EU regulators should discuss with United States authorities ways to curb volatility in agricultural commodity markets so as to avoid unwanted buildups in speculative positions, a draft paper showed Nov. 26. The European Commission, the EU’s executive arm and author of the document, said it would examine the possibility of taking regulatory initiatives in this


Crisis remakes the commodity business

Only the brave or the foolish would make predictions about the future amid the biggest market upheaval in three generations. But it is already clear the crisis is profoundly reshaping the commodity trading industry. The mix of intermediaries, customers and financial resources are all being substantially redrawn. So here are some tentative thoughts on how

World food balance seen unclear for next decade

World farming will face uncertainty for at least 10 years over how far supply and demand can be balanced, implying little short-term relief from price volatility, the EU’s leading agricultural producer France says. In a working paper authored by France and being discussed by EU agriculture ministers at an informal meeting in late September, Paris


Funds see food staple prices weathering storm

Agricultural commodity prices are likely to fall in the short term as investment funds exit the market but should recover eventually in line with their fundamentals, fund managers told a conference Oct. 7. Asked what impact the financial crisis would have on staple food commodities such as sugar, wheat and coffee, Chris Armitage, managing director

Latin America faces pain as commodities party ends

The end of a long global commodities boom threatens to hit Latin America harder than any other region, putting a sharp brake on its economies and pressuring government spending plans. From bulging foreign reserves and the emergence of corporate giants to the destruction of vast areas of the Amazon rainforest, booming commodity prices have reshaped


Commodity prices at mercy of world economy

“You can cut rates to the bone, but if nobody’s willing to lend you money, it doesn’t really matter.” – U. S. Market Aanalyst Phil Flynn Further declines in oil and metals prices after co-ordinated global interest rate cuts suggest that commodities will not return to their giddy heights until the world economy is on