The Spanish economy is failing, stocks are down and banks are being downgraded. Is there any silver lining on today’s economic times? Well, yes, but it is coming from an unexpected source.
Corn, soybeans and wheat have staged a remarkable rally over the last two days, with some delivery months rising their maximum allowable amount (called a “limit up” move). These gains can be primarily attributed to the recent weather in the Midwest, as high temperatures and dry conditions weaken crops. In what was a potential record-breaking grain yield year, U.S. farmers are now facing a potential shortfall in yield, which should cause prices to rise if demand stays constant.