Market Musings

Euro Zone update

In the election over the weekend, the Greeks have cast a majority of their support to the conservative elements and (at least for the moment) pushed the collapse of the Euro back from the precipice.  Another way of looking at these results is that it appears as though some form of austerity measures will be accepted in Greece. 

 

Although I doubt that anyone would think this resolves the problems the global economy has (and will have) with the Euro Zone—don’t forget, Spain already has one foot on the soap, and Greece is by no means “fixed”—at least for a few days, markets can turn attention to other trouble spots.  All other inputs being held constant, this Greek election ought to boost commodity markets a bit higher. 

 

But the dry weather in the wheat and corn belt has already taken over as the key market drivers.  For the next several weeks, weather will be the focus.

Corn crop threat? Or does this threaten the long term future of GMO?

On Friday, the local newspaper reported on an interesting problem that is getting to be a concern in the corn belt.  According to the St. Louis Post Dispatch, farmers in several states found that the western corn rootworm – a major crop pest that has the potential to seriously reduce yields – was surviving after ingesting an insecticidal toxin produced by the corn plants.  The gene to produce this toxin was engineered into the GMO corn by Monsanto and launched in 2003. 

Read more: Corn crop threat? Or does this threaten the long term future of GMO?