Farmers in Great Position With Commodity Prices, Says RJO's Streible

Phil Streible from Rjo Futures discusses the current state of oil and agricultural markets, highlighting the rise in oil prices and the impact on related companies. He notes the strong performance of agricultural commodities like corn, soybeans, and wheat, driven by China's increased imports and the need to feed hogs after the swine flu outbreak. Streible explains the supply and demand dynamics affecting these markets, including adverse weather and record shorts. He predicts significant market movements, especially if US-China trade headlines emerge, and suggests that investors consider undervalued commodities like gold and soybeans as equities reach record highs.

What is one reason for the increased demand for corn and soybeans in China?

• A rise in domestic corn production

• The swine flu's impact on pork and hog populations

• A decrease in global soybean supply

• An increase in wheat consumption

What factor is contributing to the current supply issues in agricultural commodities?

• Increased global demand

• Higher production costs

• Trade restrictions

• Adverse weather conditions

What is the expected price movement for corn in the March contract?

• Drop to 300

• Remain stable at 380

• Increase to about 410

• Decrease to 350

What seasonal trend is expected for crude oil starting from Christmas?

• No significant change

• Stable prices

• An increase in prices

• A decline in prices

Why might investors consider moving into undervalued markets like gold and soybeans?

• Equities are at record lows

• To avoid geopolitical risks

• To capitalize on high equity returns

• Due to a decrease in commodity prices