Commodity Sell-Off Has Winners And Losers

The biggest decline in commodity market value since the financial crisis of 2008 looked like funds running for the exits, but big differences in open positions between oil, grains and other commodity markets will signal which markets may still be overextended. Based on the decline in open interest – the number of contracts bought or


In The U.S. Midwest, A Farmland Bubble May Be Growing

Sales of everything from compact tractors to combines have jumped at Jim Lichtenberg’s Nebraska store this year as farmers try to make the most of a boom in corn and soybean prices. “Yields were good this year and crop prices are real good right now, so guys have been spending some money,” said Lichtenberg, who

Ottawa Considers Hog Options

The federal government may consider stretching the parameters of its farm safety net programs to help a hog industry in financial free fall, but industry hopes of a billion-dollar bailout package are fading. “They’ll stretch the programs as much as they can in terms of interpretation,” said Andrew Dickson, Manitoba Pork Council general manager. But


Ocean trade choked as credit notes dry up

There is growing evidence the global credit crisis is stifling seaborne trade as banks become more reluctant to honour crucial letters of credit between buyers and sellers who ship goods and resources, analysts say. “With reports of sellers’ banks deciding they don’t trust the financial institutions named in buyers’ letters of credit, have come alarming

How low can U. S. grains go?

“We are seeing a lot of wealth destruction and demand destruction. I don’t think that is going to heal itself overnight.” – U. S. Grains Analyst Jim Bower The sell-off in grains as part of a broader flight of investment money from commodities could continue through year’s end due to the expanding credit crisis, with


Governments must be ready when free markets free fall

There has been a determined effort to move away from the governmental regulations, not only in the financial and agricultural sectors, but in other sectors as well. Is extremism in the name of free markets a virtue or a vice? As we write this column, it appears that congressional and administration leaders have come to

World Bank sees tougher times in developing nations

“What we’re now moving into is the phase where one has to look more broadly at the danger of developing country growth and there it depends on policies they take and the support we and others can give them.” With world attention trained on resolving a financial crisis in western economies, World Bank president Robert