Summer Ride Up?

June 10, 2009 07:00 PM

Linda Smith, Top Producer Executive Editor
In at the least the short term, grain prices may be headed higher, believes Craig Haugaard, grain origination manager with South Dakota Wheat Growers. "It looks to me as if corn will go where crude oil goes, and Goldman Sachs now is predicting much higher crude oil prices into next year. With the funds coming in with bags of money, it is, to quote Yogi Berra, ‘Déjà vu all over again.'
"Last week, crude oil rose and the dollar fell and that was all it took to inspire buyers to come running back to the corn pit,” he says. "The funds picked up 10,000 corn contracts in a single day and the bulls were all doing the happy dance.”
Haugaard characterizes the dollar as the so-far hiding 800-lb. gorilla in the corn market. "I have to believe that the current policy of running the printing presses around the clock is going to result in a dollar that isn't worth very darn much and commodity prices that soar as inflation runs rampant.”

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