Grain prices have been in freefall of late as investors bet on a resurgence of supply from the U.S., Russia and Ukraine, but veteran strategist David Roche is not convinced.
Wheat prices are down around 29% year-to-date and at their lowest since September 2020, with short positions — bets on prices to fall — rising to a three-month high.
A combine operator climbs aboard a combine as they harvest wheat at a farm near Kramatorsk, in Donetsk region on August 4, 2023, amid the Russian invasion of Ukraine.Grain prices have been in freefall of late as investors bet on a resurgence of supply from the U.S., Russia and Ukraine — but veteran strategist David Roche disagrees.
The price falls were heightened by the U.S. Department of Agriculture reporting higher production and stockpiles than analysts had expected. The data compounded downward price pressures coming from signs that Ukraine, a key grain producer, is managing to find alternative export routes despite Russian attacks on its ports.
This, along with Russian volatility and El Nino, are "three factors which I think will disrupt the supply side" of grain markets, Roche said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Not Just Bees: Earthworms Contribute to 6.5% of Global Grain Production, Study FindsMost gardeners know that earthworms help keep soils healthy, now scientists have assessed just how important their underground activities are to global food production – and how to protect them.
Read more »
Earthworms contribute to 6.5% of world grain production: studyMost gardeners know that earthworms help keep soils healthy, now scientists have assessed just how important their underground activities are to global food production—and how to protect them.
Read more »
Revival of grain deal main agenda in diplomatic efforts at UN: Turkish FMThe suspension of the Black Sea grain initiative does not affect only the region but concerns all of humanity, says Turkish Foreign Minister Hakan Fidan.
Read more »
This is one scam Brian Roche has never seen beforeMore and more scammers are using cryptocurrency in their cons, and a new scam involving Bitcoin looks real.
Read more »
Veteran slays 'witch' sister with bayonet because of her true-crime fandomDespite acknowledging his schizoaffective diagnoses, Anthony Dibella told a New York court that he was 'convinced... [he] saved [his] mother's life' when he murdered Wanda Paoli.
Read more »