Its bullish for the prices of agricultural commodities. But that doesn't mean it is bullish for the producers. Cost base is chewing a lot of the grain price gains up and if you throw in a disruption to production (ie drought, frost) it can be enough to bring a producing area undone. No margin for error. Moral of the story - own the agricultural commodities themselves! The rising risks in production serve to benefit the values of grain.
Livestock producers should be buying wheat or corn futures to hedge their cost base on any significant retracement in futures if they wish to remain in the game of animal protein production.The theme for profitability for commodity producers worldwide is simple - invest to profit where you would normally pain eg grain growers own fertilizer stocks, aluminium miners own energy stocks/futures etc etc
