04/04/08 Volatile commodity markets

These are not times for the weak of heart and be careful; whiplash is possible from the wild swings in commodity markets, especially with wheat. VICTOR "I have never seen anything the likes of it and would anticipate we may be seeing a transition away from volatility in the wheat." Veteran analyst Joe Victor of Allendale, Inc says corn volatility is right around the corner thanks to the prospect of fewer acres of corn planted this year. Back to wheat for a moment. What caused this jump in prices and wild volatile market swings? VICTOR "We're working with some of the tightest global stocks of wheat that we have seen in our lifetime as well as going into the domestic side. We haven't seen stock this tight since 1946-1947. We believe that the volatility stays with us creating a lot of heartache as to try to target a specific price." Victor says he's forecasting a three to four percent increase in global wheat acreage. He says two crops he's watching are those from China's wheat belt and the Durum in western Algeria/eastern Morocco. If both get needed rain it will be an average global crop and volatility will leave wheat this spring and transfer into corn. Today's Idaho Ag News Bill Scott