With the grain markets the center of the commodity universe this year on account of the fierce drought that has gripped the midWest for what now seems like an eternity, commodity firms have been reaping a bonanza pushing the "buy those grains" theme for new speculators.
What has happened however is that corn prices have reached a point where the market is doing what it is supposed to be doing, namely shutting off demand.
First we learned that Smithfield, the nations' largest pork producer, began importing corn from Brazil. Even with the shipping costs to the EAst Coast, South American corn was still cheaper than US corn at the Gulf.
Now we learn today that Pilgrim's Pride, the world's second largest chicken producer, is working on an agreement to also import corn from Brazil.
While this does not signal an end to the bull run, it is a third warning shot across the bow, the first being shrinking ethanol margins, the second being Smithfield.
By the way, for those of you who might have missed it, check out my written interview with Eric King of King World News on the action in the gold market yesterday.
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