The ongoing credit crunch that was originally thought to be contained in the sub-prime mortgage market has spread to places the average trader might not suspect. Although the seepage from sub-prime to prime mortgages and the problems with bank funding are now common knowledge, the way the credit situation can affect the grain and oilseed markets is less well known.

Because of the credit issues the grain elevator commercials seem to be having, the unfolding 2008 harvest season could be a perilous time for corn and soybean traders because the spread signals that ordinarily reflect the supply-demand fundamentals could be misleading.