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Commodities Trader Oscar Carboni on why bad weather will lead to a shortage of durum wheat.
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Or I did not -- -- that low carb diet someone else wrote that on the staff and and anyway because post.
Is gonna get price here and you can blame it on the rain in North Dakota -- not -- that state grows the majority of the very special we used.
To make among other things -- And as commodities analyst Oscar -- those are bad weather means dead.
News on prices so.
What is this particular week that -- play Oscar and how's that gonna affect -- what -- parts.
Well you know -- as you might imagine with my last name being carbonite mine cart bloodlines outrage around looking for macaroni right now yeah right I'm Barbara cooks drivers -- I had.
So listen bill on on a serious note.
Canada is the largest producer of durum wheat and their stock supplies off 40% lower today than they were last year.
As you mentioned North Dakota is the largest provider of -- and we here in the United States.
They are literally.
Only 44%.
Planted and it's too late to -- the -- further because of the rain due to planting season.
Now oddly enough one of my clients happens to be an actual week door forma.
So I called them today and I said listen what's going on with of what the door we and -- -- Oscar no joke.
I've only been able to plant 25%.
Of my acreage and that's it I can't -- anymore there's been too much rain same thing happened in Canada.
So he believes that yes there will be a shortage he also tells me that on the -- -- -- go to replace the acreage with spring -- Some flowers and flax seed what here's the thing.
What he says is that you could literally.
Change or mix some of the durum wheat with some -- all winter wheat and still end up being able to make impostor.
The only difference is the possibly break inside the box before you get it home so I don't know that this is going to be the next national tragedy.
But it certainly is -- a little thing that creates a slight bit of inflation at.
At the cash right now I'm telling you this -- it's not gonna get Iran and adkins right away but -- by the editor us so here's what I'm wondering about ended this is just the latest commodity your food -- commodity inflation news.
And it doesn't go away.
And how does it look this year for you know because the government keeps telling us Oscar that it's not a problem but.
Smart guys like -- been way ahead of this keep reminding me and.
-- -- What you know O'Neal -- and interest they think things are starting to change the US dollar technically is beginning to build the bottom.
And many of the foodstuffs as you know all priced in US dollars -- the dollar stocks in the send.
Food stuffs will pull back and in fact the CRB index it's a basket of seventeen commodities out of the seventeen commodities during this entire week and last week.
Crude oil heating oil gasoline.
Coffee cocoa platinum palladium gold silver copper wheat soybeans corn have all pulled back dramatically and it all week.
Four of the seventeen have gone up and it's cotton orange -- hogs and cattle so we are actually getting a little bit of pullback.
How long -- position -- that are gonna.
Circumvent what's been happening elsewhere and -- Well you know that the stronger dollar is actually going to be beneficial to our country for a while.
As you might imagine.
Dollars are here and if products -- priced in dollars a follows go up the products it cheaper.
So that will help us it'll probably not the stock market down for a little jolt and then maybe after the summer the dollars and the stocks could rise together.
But I think overall this is actually a positive development.
But not of course and durum wheat that's not -- in four of the -- it is out there you'll pay slightly more.
-- -- -- -- thank you very very much I would have never -- -- Italian American but thank you very don't just a couple of thank you all right --
