The ongoing demand for biofuel production continues to spillover into the prices we pay for food.  Despite larger US planted acres and generally favorable weather in the corn belt this year, increased demand for energy alternatives both domestically and abroad have diverted some of these acres away from food and associated industries.  Higher corn prices [...]

The weather piece in the energy price puzzle continues to point to a bearish scenario for the remainder of the summer in the US. July temperatures were normal to below normal in all major demand regions including Houston, Chicago and New York. The Weather Trends International outlook for August further supports the continuation [...]

Last week’s rains in Brazil’s Centre-South provided a nice boost for cane to be included in next year’s harvest.  Many fields from Campinas through western Sao Paulo state through Curtiba (Parana) received 2 to 3 inches of precipitation last week, helping the developing cane through the seasonal dry period.  While current crop (06/07 crop year) [...]

While corn and soy futures started last week off on a bearish note, trader sentiment quickly changed as short term models pointed to more heat building up in the Central and Southern Plains states. As it turns out, this didn’t verify, but the market still closed strong at the end of the week. [...]