Snow US makes grain expensive

World May 2, 2017 13:09

- Grain has become more expensive. Poor harvest in the American grain grows. Frost and snow also destroy new plantings, of which 10% would have fallen out.

That estimate of destruction makes consultant Soybean \u0026 amp; Corn Advisor.

On a daily basis, grain won 6%, this year the main nutrient for bread and other meals is 8.5% higher.

In addition, it has been planted 20% less than a year ago, mainly due to heavy rain in the United States.

Hedge funds in the meantime had the second largest short positions in cereals. It is the tenth week in a row since 2014 that hedge funds sell more positions than buy. \u0026 Nbsp;

According to figures from the US Department of Agriculture, the extent of the damage is still uncertain.

That led to a sharp rise in prices.

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The amount of short positions is seen as dangerous. A Chicago merchant compared that with 'a cigar party in the gun powder room'.

Over the longer term, the price is still far below its peak.

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Export prices for wheat from Russia remain high. Traders see too much drought compared to the US. Moscow today deals with Turkey, its second largest customer via the Black Sea. According to large parties, grain traffickers are focused on this outcome, which can determine European prices.

The price was slightly stunted by large purchasers of animal feed. They hit their stocks and buy grain.

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