STAFF BLOG STORM TRACKER Guilin, China
An article I wrote for the Forum is in today's paper. This link will probably only be active through Labor Day, but I thought you may enjoy the article.
http://www.inforum.com/event/article/id... Posted on 9/6/09 at 2:00 AM
The wheat markets had losses of 15 to 20 cents last week, following along with the steep losses seen in the row crop markets. Noncommercial money was flowing out of the grain markets ahead of the holiday breaks and year-end.
PIERRE, S.D. — It is a long way from Parker, S.D., to China. I am fortunate to have had the opportunity to travel to China twice in the last eight months. Though the land area of the U.S. and China is fairly close, China has nearly four times the people: 1.4 billion. In recent years, the population in China has grown every month by the population of South Dakota. It’s mind boggling.
Pork exports were phenomenal last year, and the U.S. Department of Agriculture has forecast the same for this year. However, the bears are not so easily convinced. They were watching pork prices fall in China (our largest export market).
Wheat struggled last week, even with a friendly U.S. Department of Agriculture report. For the week ending April 12, May Minneapolis dropped 8.5 cents, May Chicago was 75 cents higher, and May Kansas City was off 9.5 cents.
The corn market was up 30 cents last week in old crop, while new crop contracts gained about 10 cents. Talk of increased exports to China provided direction to the market early last week, while the possibility of an early planting season due to warm weather in the Corn Belt was talked about through the second half of last week.
BEIJING — Chinese officials said Wednesday they were preparing for a severe, long-lasting drought in several parched provinces, causing wheat prices to spike on the prospect of the world’s largest consumer putting pressure on a global supply that’s already squeezed.
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