Below is a table of 2010/11 price projections from the USDA report. If you chart out agricultural commodities, commodity indexes, base metals and precious metals, you can see that some prices pierced through overhead resistance on Friday. Right now the corn future is at a 2 year high (see chart). I'm also watching to see if the US Dollar Index catches support around here (see uptrend from 2008-2009 and 2009 floor on USDX/CZ10 chart). Eventually there will be a hard asset correction imo; however, the Ag trend, especially corn, looks strong. We'll see how 2010 ends. Hopefully input costs are hedged going forward if we see price spikes. Cocoa Puffs are already expensive as it is. Here we go: "Don Mulligan, chief executive at General Mills, told investors that the food company was “about 50 per cent hedged” for the 2011 fiscal year, which began in June." FT.com 8/2010.
DXY (Dollar) vs. CZ10 (December Corn Future) @ MarketWatch
Related links on agricultural commodities + oil
Corn prices rise to their limits on overnight markets - DesMoinesRegister.com
Food commodities attract upside bets - optionMONSTER
Corn Jumps 8.5% to Highest Price in Two Years After Supply Outlook Reduced - Bloomberg (Dec, 5.7325/bushel)
Corn Stocks Below Critical 1 Billion Mark - Greyson S. Colvin of Farmland Forecast - SeekingAlpha
USDA Report a Game Changer for Corn - James Courdier (Liberty Trading Group) on SeekingAlpha
Meat Market Corn Crunch Means Most Expensive U.S. Beef in Quarter Century - Bloomberg
Hedge Funds Raise Bullish Bets on Oil to Five-Month High: Energy Markets - Bloomberg
US corn crop shrinks, smallest stocks in 14 yrs - Reuters
World Wheat-Inventory Estimate Cut on U.S. Output Drop - BusinessWeek
Corn, Soy, Wheat Prices Surge as U.S. Cuts Supply Outlook - Bloomberg [10/8]
