How did DTN do on ag outlook? | TSLN.com

How did DTN do on ag outlook?

DTN Staff Reporters, Editors

OMAHA (DTN) – Each year, DTN presents an outlook series on what is expected for the year ahead in various areas of agriculture. As we launch this year’s outlook series, we thought it might be interesting to see what we reported last year and if our crystal ball was right.

Markets: In our Outlook 2010, DTN noted the strong correlation between stocks and the monthly close of the Reuters/Jefferies CRB Index, which tracks a basket of commodities. DTN Senior Analyst Darin Newsom said, “Fundamentals are not the driving issue for commodities; rather it’s the flow of money. Fundamentals may come into play later in the year, but for now, the outside markets seem to determine the direction of ag commodities.”

Fundamentals did, in fact, kick in by mid-summer, when wheat literally burned in Russian fields and then U.S. corn yields were disappointing. That only highlighted the importance of investors as they jumped aboard the rally train. Net-long positions in Kansas City wheat, for example, rose from 23,162 at the start of July to 82,442 by mid-September. While recession news has faded going into 2011, money flow remains a major factor in ag commodities.

For that reason, DTN decided that riding the wild markets became the top agricultural story of the year.

OMAHA (DTN) – Each year, DTN presents an outlook series on what is expected for the year ahead in various areas of agriculture. As we launch this year’s outlook series, we thought it might be interesting to see what we reported last year and if our crystal ball was right.

Markets: In our Outlook 2010, DTN noted the strong correlation between stocks and the monthly close of the Reuters/Jefferies CRB Index, which tracks a basket of commodities. DTN Senior Analyst Darin Newsom said, “Fundamentals are not the driving issue for commodities; rather it’s the flow of money. Fundamentals may come into play later in the year, but for now, the outside markets seem to determine the direction of ag commodities.”

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Fundamentals did, in fact, kick in by mid-summer, when wheat literally burned in Russian fields and then U.S. corn yields were disappointing. That only highlighted the importance of investors as they jumped aboard the rally train. Net-long positions in Kansas City wheat, for example, rose from 23,162 at the start of July to 82,442 by mid-September. While recession news has faded going into 2011, money flow remains a major factor in ag commodities.

For that reason, DTN decided that riding the wild markets became the top agricultural story of the year.

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