There is no doubt that grain prices in the U.S. are influenced by global economic conditions and crop production worldwide. This is definitely true with wheat markets as noted by Doane Advisory Services with a few notes outside of domestic positives and negatives as released July 1.
Here are the short notes:
“On again/off again fears of Greek debt default have injected a major level of uncertainty to global grain markets and in times of uncertainty, traders tend to head for the sidelines. Heavy fund selling has been the result and it resumed Thursday.
“Outside the U.S. and Canada, there are no major trouble spots for wheat, weather-wise.
“Russia and the Ukraine are offering new crop wheat at below-market prices in order to recover market share lost after last summer’s drought and eventual export embargo in the Black Sea region.
“Crude oil prices remain weak on the combination of global economic jitters and last week’s decision by the 28-member International Energy Agency to begin releasing oil reserves over the next 60 days.
“Gold prices have broken sharply the past two weeks on ideas that inflationary expectations have remained too strong for too long and that a slowing global economy may present more risk of deflation than inflation.