Grains: The basics of supply & demand

摘要

Agricultural markets have experienced the downside of the supply/demand paradigm in 2009 and lower prices may continue into 2010 but this may provide bargains as demand and eventually inflation could return with a vengeance.rnNow that the U.S. grain and oilseed crops have been tucked away for the winter, the market needs to discover a price range that adequately and orderly distributes supply, while providing the incentive to get enough acreage for 2010 to meet demand requirements. Traders should have ample opportunity to trade grains from either side within these ranges. However, traders will want to identify some commodities with declining supplies that will offer good long-term positions for a hedge against an inflation-based economic recovery.