“I don’t think there are enough acres to satisfy the demand in all these commodities” says Chicago trader as soy, wheat, corn prices soar

In Illinois, May soybean futures closed Thursday at $14.24 a bushel, wheat futures reached $10.45, and corn settled at $5.37, all nearly double from 2006. The Agriculture Department will release its projection of acres planted in March, while Chicago grain trader Dan Brophy told the Chicago Tribune, “personally, I don’t think there are enough acres to satisfy the demand in all these commodities”. The US Agriculture Department projected farm-grown exports at $101 billion in the 2008 fiscal year, a 23 percent increase over 2007 that would result in a $24.5 billion agricultural trade surplus. The trade balance has improved $10 billion since November, despite a falling dollar. However, the American Bakers Association warned that wheat reserves fell to a 27 day supply, compared to the historic average of 90 days.

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