05 May 2012

ARGENTINA / BRASIL / USA / CHINA : Drought Delights USA Traders.


     USA soybean traders are clicking their heels...over a drought in South America that has withered-up supplies...and is driving-up prices for oilseeds.
     This week...soybean futures hit $15.125...the highest since 2008...thanks to heat and poor rains in South America.
     Brasil also is reportedly running low on stored seeds.
     Traders predict China will be forced to buy soybeans...at high prices from the USA...after Brasil, Argentina and Paraguay report crop declines of 14%.
     Some even predict prices will hit the 2008 high...$16.36.
     Commodities traders are always their happiest...when 'beans are in the teens'.