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The Buzz: Watch out for Washington

Prices may be impacted by events and decisions in the capitol.
Bryce Knorr 
Published: Jul 29, 2009

Crop may be growing in the field, but events in Washington could have a huge impact of the prices farmers get for their production this year, according to the Farm Futures marketing team.

Three key events in the nation's capital bear watching. The CFTC holds hearings this week on turmoil in the commodity markets, with some commissioners calling for limitations on trading by index funds. Market Analyst Arlan Suderman says there are a number of better fixes to the situation, because speculative hedge funds were more closely correlated with market volatility last year.

Senior Editor Bryce Knorr noted another Washington event could affect corn prices. USDA is resurveying acreage in seven states, with results reported August 12. Farm Futures is conducting an independent survey, with results out next week.



The Buzz - July 29, 2009 from William Vogt on Vimeo.



Demand could also depend on government action. The EPA is considering letting oil companies blend more ethanol into fuel mixes, but some of the agency's staff seem strongly opposed. Farmers may still win the debate, depending on how much pressure is brought to bear on bureaucrats, says Suderman.



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Tagged: farm, farm futures, usda, ethanol, arlan suderman

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