Market Comments
By Jim Stephens,
President of Farmers National Commodities, Inc.
Market Update for August
26, 2008
Futures prices have had wide
daily price fluctuations as commodity traders try to determine the risk with
getting corn and soybean crops to maturity versus export business with a
stronger dollar. Most of this crop still needs at least a normal growing
season, and some of it needs a late frost to reach maturity. Now we are
starting to see stress in fields from a lack of moisture all across the
cornbelt with some areas more severe than others.
The
stronger dollar could reduce the amount of exports next year as US
commodities become higher priced in relation to products from other
countries. This could limit price recovery this fall until we start to see an
increase in export bookings from pent-up demand as end users waited for a
confirmation of a summer low in the markets.
With a possibility of rain in the
forecast into the three-day weekend, we could see a weaker market the remainder
of the week with price direction next week dependent on the amount of rain we
receive over the weekend and 30-day temperature and moisture outlooks.
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