Market Perspective

Over the last month the price of wheat has been in a fairly narrow trading range. That relative calm has belied some of the powerful forces that have been influencing the grain markets both globally and locally. The futures markets are the backbone of the grain markets, for better or worse. And over the last month the speculative funds have had a major influence on the market by acquiring a record short position in wheat and a very sizeable short position in corn, largely based on the anticipation of a record corn harvest. Up to just recently, the perception has been that the weather in the co...