Sunday, February 17, 2008
"Speculative money pouring into the grain market ignited another round of record prices, with analysts pointing to Minneapolis Grain Exchange Wheat as one of the main drivers. ... MGE March-delivery wheat rose 30 cents to $14.93, a record. ... There are plenty of fundamental reasons to be bullish on wheat, especially with supplies at historically tight levels, after weather problems around the world cut down production last year. In addition, global demand for wheat continues to strengthen. ... 'No one knows how high is high,' said Dan Basse, president of AgResource", WSJ, 7 February 2008.
I'll bet no one knows. That said, like all commodities, I expect wheat to increase in price in all currencies. Even the Chinese Yuan. I wonder if Jeffrey Currie (JC) of Goldman Sachs has taken a position on wheat prices. In US dollars. I referred to JC on 24 October, 2 and 9 November 2007 and 4 and 5 February (twice) 2008.