Markets Shrugging Off Floods Because of ‘Grain Glut’
Massive supply of grains has shielded futures markets from impact of flooding
A massive supply of grains has shielded the futures markets from the impact of flooding in the Midwest so far, with traders largely shrugging off this week’s reports of destroyed storage bins, swamped elevators and questions about if waters will recede in time for planting, reports Reuters.
The problem is grain glut that has long weighed over commodities markets, says Tom Grisafi, a market advisor at commodity brokerage Advance Trading.
“If we lost 50 million bushels of beans, would it matter?” Grisafi told Reuters. “If 100 million bushels of corn were gone, would it matter?”
The answer in traders’ minds: no.