Bigger U. S. grain supply, markets rally

DON BOUSQUET It’s Your Business For three-times-daily market reports from Don Bousquet and RNI, visit “ICE Futures Canada updates” at www.manitobacooperator.ca Grain and oilseed futures at ICE Futures Canada in Winnipeg closed the week ended Dec. 12 higher with gains in the U. S. grain and soy markets boosting prices. Canola saw solid gains, rallying

Commodities lose diversification edge with crisis

“There is nowhere to hide.” – BRIAN HICKS Using commodities to hedge potential losses in stock markets has not worked lately, and the tighter link among assets these days means diversification benefits may not be as great as before. Hedge funds, pension funds, mutual funds and wealthy individuals who invested in commodities on the theory


U. S. cattle futures recover slightly

U. S. cattle futures recovered slightly on Monday of this week following last Friday’s tumble to the lowest level in more than two years amid growing concern that contracting global economies will reduce demand for high-priced beef. December live cattle closed up 1.550 cents at 83.100 cents per lb. and February was up 1.225 at

Human nature causes history to repeat

David Drozd Recent volatile price action is similar to that seen in the early 1970s when markets realigned into a new higher trading range. Examining these more than three-decade-old patterns can reveal clues about future price direction; history often repeats itself because human nature never changes. If history should repeat, similar to trading patterns seen


Shipping in urgent London talks on credit worries

Ship industry talks targeting counter-party credit risk were being held in London Nov. 19 in a bid to stem the slide in dry commodity freight markets and kick-start trade, organizers said. Bill Lines, spokesman for the Baltic Exchange, the world’s leading maritime marketplace, said the hastily convened talks were being held to restore confidence in

Cattle, corn and the credit crunch

NDSU EXTENSION SERVICE Since midsummer, new-crop December corn futures prices have declined more than US$4 per bushel from the $7.88-per-bushel high. During the same time, November feeder cattle futures prices declined more than US$20 per hundredweight (cwt) from highs of more than $119. My previous columns have emphasized the usual opposite relationship between feeder cattle


U. S. hogs end at six-week high as supplies abate

U. S. hog futures closed at their highest level in six weeks at the Chicago Mercantile Exchange Nov. 28 as investors believe the flood of hogs that hit the market this fall is abating, which should mean higher cash markets in the weeks ahead. Cattle futures finished lower, largely the victim of selling by investors

Pioneer Hi-Bred launches U. S. hedging service

In a bid to extend its reach into the U. S. grain industry, DuPont said Nov. 13 it will launch an electronic instant hedging and cash grain commodity transaction service. The “e-Pit” program, a joint project by DuPont’s Pioneer Hi-Bred business unit and Farms Technology LLC, partly owned by Pioneer, is aimed at speeding a


Electronic trading the pits, traders say

Electronic trading of grains is now dominating markets that not long ago were the last bastion of arm-waving, shouting pit brokers, but the easy access to prices and speed has come at a price – wild market swings and lack of trust that is driving away users. The focus of the controversy on the Chicago

U. S. House panel to monitor CDS clearinghouse pace

Futures exchanges from Chicago and New York will be asked to report in early December on their progress in forming clearinghouses to stabilize credit default swaps, a U. S. House of Representatives committee chairman said recently. The clearinghouses are regarded by U. S. regulators as a way to restore liquidity to the swaps market and