Monday, March 28, 2011

Falling Supply, Rising Demand & Currency Devaluation

Falling supply and rising demand within backdrop currency devaluation is an explosive cocktail driving commodity markets.

Headline: USDA confirms corn exports of 1.25m tons to anonymous destination
Meanwhile, US inventories of corn for 2010-11 are currently expected to be at a 15-year low of 17.1m tons, China’s corn consumption is powered by its affluent middle class whose dietary habits have shifted to meat-based food items thereby driving up livestock feed demand.

Source: commodityonline.com

From Bob

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