Will European Debt Affect Crop Prices?

October 5, 2011 05:14 AM
 

While there hasn’t been a lot of talk about it, the recent downgrade of French banks could end up being a big deal, says Kevin Van Trump, market analyst and marketing blogger on AgWeb.com. France’s Société Générale is one of the oldest banks in the country and has a huge global presence. It provides lines of credit for thousands in the hedge fund industry.

“Many believe the U.S. government bailed out AIG in order to keep SocGen from taking
an estimated $11 billion hit,” Van Trump says. “With so many lines of hedge fund credit being tied to SocGen, you have to believe that any type of major issues in liquidity will force it to tighten its lines and reel back credit extended to the funds,” he says.
 

“If something like that plays out, it will rock the corn market more than any yield data reported by USDA,” he says. “We still have to keep a close eye on developments in Europe.”


 

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close