Some bound effects of huge decline in the prices of corn, wheat and soybean are expected this following week. Nevertheless, I predict that these prices will start to rebound slowly because of low exporting sales. Then there will be negative changes in price early next week but not as much as last Friday. Argentina, the world\u2019s No.6 wheat exporter and No.2 corn supplier after the United States, modified corn and wheat export policy to increase purchases of both grains for overseas. Domestic farmers are encouraged to plant more in the future. Under this new rule, exchange date showed\u00a0 that 3.8million tonnes of wheat and 6 million tonnes of corn would be purchased in2012\/13, way up from 1.2million tonnes of wheat and 2.1million tonnes of corn at this point in last year. However, this season\u2019s single quota was announced after the farmers already started planting wheat. Therefore, the exchange expects Argentine wheat production to fall sharply this season. 2012\/13 wheat production will be 10.12million tonnes, dropped by 28percent from 14million tonnes produced last year. Ricardo Marra, resident of Buenos Aires Grains Exchange, said that growers would have planted more wheat if the wheat export quota was announced two months earlier, with the high prices. Fortunately, the announcement of the quota for corn came in time to encourage farmers to plant more. The\u00a0area seeded with corn\u00a0is still\u00a012% less than last year, but 8%\u00a0more than\u00a0the original plan\u00a0before\u00a0corn export quota was announced.\u00a0With the quota,\u00a0a month later 15 million of 2012\/13\u00a0corn would be available for exports . Therefore, I expect that wheat future price will rise continuously and corn future price will drop after increase due to the bound effect the following week. I would like to get short position in corn and long position in wheat.<\/p>\n
http:\/\/www.brecorder.com\/markets\/commodities\/america\/85668-new-argentine-corn-wheat-rules-help-farmer-sales-.html<\/a><\/p>\n http:\/\/www.brecorder.com\/markets\/commodities\/america\/85660-us-grain-exports-corn-wheat-sales-slump-on-high-prices-.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Some bound effects of huge decline in the prices of corn, wheat and soybean are expected this following week. Nevertheless, I predict that these prices will start to rebound slowly because of low exporting sales. Then there will be negative … Continue reading