The Economist - How grain has gone from famine to feast

The Economist - How grain has gone from famine to feast

In fact, Mr Trump’s policies may well be dampening near-term prices. Wary of presidential surprises, American farmers are “front-loading” their exports, which is “more something you see in Russia”, notes Mike Verdin of CRM AgriCommodities, a consultancy. Uncertainty and high interest rates have also pushed investment funds away from commodities and into other assets. Those that remain are betting grain prices will fall. Having hit a record in May, net short positions on Chicago wheat contracts remain high.