Will the buying frenzy continue?
Jul 09, 2013
Global end-users of grain and soy have been more aggressive buyers ahead of the upcoming USDA "Supply & Demand" report due out Thursday morning. Reports released yesterday showed China buying another 840,000 metric tons of SRW wheat for 2013-14, along with another 120,000 metric tons of soybeans. There were also reports of another 135,000 metric tons of soybeans sold "unknowns" and 120,000 metric tons of corn sold to Mexico. Question is will the recent buying frenzy continue? It is interesting, and we should take note, spot wheat prices are about $0.30 cents cheaper than spot corn prices... keep in mind, most demand for wheat once again is clearly as a feed substitute. The kicker is with wheat acting as a substitute for corn, and being in much more ample supply, the old-crop corn story is NOT nearly as sexy as the old-crop soybean story....
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