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You can find market analysts who think grain prices will continue to decline and you can find analysts who think prices are going to improve. One of the optimists is Robert Winslow of Wellington West Capital Markets Inc. He released a report this week predicting that Ag Equities are poised for a strong rally as grain prices rally from the lows they have established. The report notes that since the beginning of the year, copper prices have increased 92 per cent, oil prices have increased 50 per cent, and gold prices have increased 14 per cent. Meanwhile, grain prices have dropped an average of 19 per cent. One of the few commodities doing worse that grain is natural gas which has dropped 44 per cent year to date. Winslow notes that global grain supplies have been rising, but now seem to have leveled off when expressed in days of supply. The Wellington West report also notes that most grain prices are now near to the cost of production levels for American farmers and this too should be supportive of a price bottom. There are other analysts who say we haven’t seen the bottom yet. It’s rare to see such division on the overall direction for prices. The next few months could be very interesting. I’m Kevin Hursh. For more grain prices visit www.dynagra.com
Kevin Hursh PAg, CAC