How is MFer Global going to effect this year's planting season? Anyone here speak grain commodities fluently? Grain reserves are very low this year. Normally, this would mean farmers would plant a lot more. Also, cattle has gone up, citing higher feed costs. I am just wondering how MFer collapse is going to effect how ranchers and farmers plan for this season. I know we are a PMs site, but I believe all things are related.. Would love to hear what experienced TF commodities traders think.
2012 grains/cattle - Question
I don't think MFG deal affects grain production in US. Certainly farmers were hurt financially, but they have marketing options other than hedging. They can forward sell directly in the cash market to local elevators, feed mills, or ethanol plants. I think farmers will respond and plant all the acres they can, prices offer good profit this year.
And yes, I agree all these markets are inter-related. Food security a primary concern for all nations.