WINDOM — Minnesota's corn crop is off to a good start and could contribute to a record U.S. harvest. But uncertainty over prices has farmers wondering if a bountiful harvest might cost them more than they can sell their corn for. Although it's still very early in the growing season, preliminary indications are that there will be a very big harvest, said Joe Glauber, chief economist for the U.S. Department of Agriculture. "We're calling for record corn production of almost 14.8 billion bushels," Glauber said.
Saturday, May 26, 2012
Corn crop could hit record, but also depress prices
WINDOM — Minnesota's corn crop is off to a good start and could contribute to a record U.S. harvest. But uncertainty over prices has farmers wondering if a bountiful harvest might cost them more than they can sell their corn for. Although it's still very early in the growing season, preliminary indications are that there will be a very big harvest, said Joe Glauber, chief economist for the U.S. Department of Agriculture. "We're calling for record corn production of almost 14.8 billion bushels," Glauber said.
Greece Needs Europe, as the Latest Numbers Show
It’s easy to stiff your creditors and walk away if you won’t need to borrow more money any time soon. Not so easy if you’re heavily dependent on a continuing flow of credit from abroad. That’s Greece’s situation. Greece’s dependence on the rest of Europe comes through clearly in today’s report from the Bank of Greece on the nation’s balance of payments. Bear down, because this gets technical.By , the balance of payments for every nation always comes out zero. But there are good ways and bad ways to get to that zero. Greece is getting there in a bad way.
What a Return to the Drachma Really Looks Like
From a distance, returning to the drachma seems like a great solution for Greece. Economists such as New York University’s Nouriel Roubini say that by quitting the euro, Greece would seize control of its fate. It could pay off its euro debts with less valuable drachmas—stiffing creditors. Having a cheap currency would make Greece’s goods and services more affordable, drachma advocates say, shrinking a current-account deficit that’s about 9 percent of the entire economy. It actually poses a huge risk.
French Bonds Gain as Investors Seek Crisis Havens
France’s bonds rose in the week, with 10-year yields falling the most in five months, as investors sought higher-yielding alternatives to German securities as havens from Europe’s debt crisis. Yields on the French benchmark debt slid to a record yesterday as a report showed consumer confidence improved and after Le Parisien reported the government may raise tax-free state savings-account limits, potentially boosting demand from banks holding the deposits. German 30-year bonds pared a fourth week of gains as Italian Prime Minister Mario Monti said Europe’s largest economy can be persuaded to support joint euro bonds. Spanish 10-year yields stayed above 6 percent.
E-Mini S&P 500: Absence of Euro tidings lead to upswing
The E-Mini S&P 500 trended higher in the wee hours of the morning perhaps on lack of negative news coming from the Euro Zone! As the day wore on, the reminders were out there that Greece may exit the European Union and France is a major creditor! The US Consumer Confidence Sentiment did show more optimism than it had in the last four years. The US Thomson Reuters/University of Michigan report increased sentiment to 79.3 from 76.4 in April exceeding the forecasts of 77.8. US Consumers with income over $75,000.00 per year expected a 2 % income increase.
Spain Pours Billions Into Bank
MADRID—Spain will pump €19 billion ($24 billion) into troubled lender Bankia SA, BKIA.MC -7.43% the bank said Friday, effectively nationalizing the country's third-largest bank in a dramatic effort to assuage concerns about the stability of its financial sector. Worries about Spain's banks, which are saddled with billions in toxic real-estate loans, have heightened in recent weeks as Greece's political crisis has intensified and investors contemplate the knock-on effects of a potential Greek exit from the euro.
Study Shows FX Carry Trade Really Does Work
LONDON (Dow Jones)--It pays to sell low-yielding currencies and buy higher-yielding ones, at least in the long run, according to a new academic study released Friday. Currencies watchers have puzzled over the merits of this basic investment tactic--known as the carry trade--for years, because in theory, it shouldn't work; exchange rates could be expected to shift fast enough to neutralize any gains from investing in currencies linked to higher interest rates, and higher inflation in high-rate countries could also be expected to nibble away at returns.
Signs of Fatigue in the Commodities 'Supercyle'
Signs are emerging that U.K.-listed miners are reassessing billions of dollars' worth of expansion plans in response to a recent sharp fall in commodity prices and mutterings that a 13-year-long boom could be peaking. The so-called commodities supercycle has largely been driven by Chinese demand. But a slowdown in the world's second-largest economy has raised fears over whether commodities are in the middle of a correction or something more serious and long term
Natural Gas Skids 3% on Demand Concerns
Natural-gas prices fell 3% as lower temperatures cooled demand for air conditioning fired by the fuel. Also, market participants believe that recent increases in demand from utilities switching to natural gas from coal may have hit a ceiling.
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