Deutsche-Bank-Lower-Food-Prices-Not-in-Sight
Good to see Deutsche Bank finally mentioning currency debasement of the USD as a key driver of food prices.. You recall a year or so ago no reports mentioned currency debasement as a driver. At least research departments are playing catchup now. It seems few in the farming business now believe much the USDA say. As a recap, the USDA report a couple of weeks ago stunned the market by its huge corn acreage forecast and lower corn demand forecasts.
The USDA’s reports are statically more often wrong than right and normally significantly over optimistic. Corn has risen 15% from the post report lows with USDA credibility again in question.
‘Jim Riley, with Riley Trading in Brookston, IN, says the government numbers are inaccurate, I hate to say it but this report is a blatant lie. Riley especially questions the 84 million harvested acre projection in the Thursday USDA report. This number is higher than earlier USDA estimates, something he finds hard to believe in light of the late planting and poor planting conditions that have plagued much of the Corn Belt’. (Gary Truitt in Koenig Online).
‘Just this past week China stepped in and bought 540,000 metric tons of US corn for delivery later this year. This one week of purchases, well exceeds the 500,000 tons the USDA had estimated that Chinese would buy from the US during the entire year. My question is, when is the USDA going to stop listening to the Chinese propaganda, and stop playing these ridiculous games. How is it that so many other people can conclude that China has a corn problem, but the USDA continues to buy into the Chinese rhetoric and talk that everything is fine? This has me completely baffled. There were several analyst including myself that have been saying since the beginning of 2011 that China would more than likely need to import at 5-7 million metric tons of corn this coming marketing year. We are now finding out that even these numbers may be too conservative. With all of the resources, money and funding, available to the USDA, I just can’t figure out how they missed this number in such a big way’. (From Inside Futures magazine)
Rich
(1 votes, average: 5.00 out of 5)
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