The December US Corn futures contract rose to $370 yesterday from around $343 on September 18th, signalling what may be the beginning of a bullish trend in corn futures prices. Amid still strong production forecasts various factors are converging to push prices higher.
Emerging Markets – the bottom isn’t in
Emerging markets have significantly underperformed developed markets this year, but just because EM is cheap on a relative basis doesn’t mean now is the time to buy. So far this year Turkish equities are down 50%, Argentinian equities are down 50% and Chinese equities are down 20%. It is important to examine the causes of EM weakness to determine whether or not current conditions are likely to persist. The two most apparent reasons for EM weakness are dollar strength (albeit modest so far) and China slowing.
Coffee – darkest before the dawn
Just a few weeks ago the price of Arabica Coffee Futures plunged to a 12-year low, the bear market in coffee has been relentless, and it is decision time for producers. Many producers have been selling at a loss due to persistently low prices, some farmers have even stopped planting coffee beans altogether and switched to coca. Recently, the World Coffee Producers Forum met in Mexico City to address what many members consider to be a crisis in the coffee market.
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