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Grain Rally Continues

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  • Description

    FBN’s Jeff Flock on the impact of the drought in the Midwest on grain prices.

  • Duration 1:46
  • Date

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Since continued to react Jeff Flock is taking a closer look at the drought impact from the pits of the CME -- And you know Melissa yesterday were out on a -- -- looking at the cattle and right now and this is live cattle right behind us here feeder cattle next door got -- -- with me.

You just said get a little bit of a break -- -- hogs to we did as corn prices go up that as an input cost of producing hogs and cattle so at some point eight.

The market has to go up to offset those input cost.

However in the near term the guys were feeding those hogs.

As they're feeding cost is going up there saying our I need to get -- sell term supply exactly so that drives prices down in the short term let's take a a look at corn and beans take a look at those two that your input cost and today we get another rally again corn up between 1517 cents.

Beans up twice sure it it what I'm worried about his is that damage may be done -- -- midwest.

You've got -- -- is exactly the wrong time and that's what generated at the price is that you're at now walk began the whole Circuit City had a break in at Citi didn't typically set had been inflationary for the last few days.

But at this point guys are saying and at the farm we -- -- former yesterday who said.

I can get rid of some of these -- I can't afford to -- -- -- exactly feeding him as the problems on the front end it weighs on the market for sure but in the long term it certainly will -- some higher prices down the -- and that your big point if we put -- the feeder cattle guys you -- -- feeder -- up a couple cents today that's pretty decent move and that is because as you say it's all inflationary at some point you got it -- -- putting premiums in the back into the -- cattle market as well as you -- -- -- that market up in the back so -- certainly supporting -- Lot of lot of action down here trays always busy but.

Particularly now in the midst of a drought a lot of lot of choppy trading.

Jack thanks so much.

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