The big news today is not the Countrywide merger with BAC. It isn't American Express or even Merrill's rumored write down of $15 billion. Oh no. The big news today in my opinion looking long term is what is going on in the trading pits at the Chicago Board of Trade. WOW.
The USDA released much anticipated agriculture report this morning. All that can be said again is WOW. Basically there isn't enough corn worldwide to meet world demands and even really domestic consumption. So corn has limited up today and there is chatter that it will limit up on Monday. Winter wheat acres projected planted is also very disappointing. Wheat is up. 6 month contracts and out on Soybeans has limited up also.
Why is this more important than Countrywide or American Express. INFLATION. If these food commodities move up another 50 to 100% the consequences for inflation are huge. The government will ignore them but they will make there way into other areas of the economy and be one more very large limiting factor on consumer spending.
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