Categories: Commodities and Gold

Global Grain Production up, Commodities Traders Down

Global Grain Production up, Commodities Traders Down (Bloomberg)

The United Nations’ Food & Agriculture Organization (FAO) reported today that global grain production will be much more robust than initial estimates. Citing improved crop yields from Canada to China to the European Union, the FAO’s report estimates that total output of grains, including wheat, rice, corn and barley, will be 2.498 billion metric tons, about .3 percent higher than originally forecast.  According to the Chicago Board of Trade, futures’ prices for some of these commodities have already tumbled as much as 40 percent, and this new news will only exacerbate that slide. With the U.S. Department of Agriculture set to update its estimates for domestic and grain supplies tomorrow, investors may want to consider shorting commodities prices.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

Recent Posts

Sample Weekday Wrap/Closing Comments

This content is for paid subscribers only. To gain access subscribe to one of our…

2 months ago

Soft Landing Premise Still Driving Bullish Narrative

It is hard to find a seasoned investor who doesn’t believe the stock market is…

6 months ago

Are You Prepared for the Next Market Collapse?

No one believes a financial disaster can strike… until it’s too late. That’s bizarre, considering…

1 year ago

Options Industry Council (OIC) – What is It?

The Options Industry Council is a resource used to educate investors about the benefits and…

1 year ago

Put-Call Parity – Defined and Simplified

The put-call parity is the relationship that exists between put and call prices of the…

1 year ago

Three Cheers for the Magnificent Seven

“It’s not a stock market, it’s a market of stocks.” -- “Maxims of Wall Street,”…

1 year ago