The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Kevin Van Trump has over 20 years of experience in the grain and livestock industry.
The key phrase that everyone keeps noting today, is the Fed's comment that "significant downside risk" still exist in the US economy. To say the least this has been tough for global traders to swallow. Throw on top of that, economic data from China overnight showing that manufacturing has slowed down for the third straight month in a row, and that European factory output has also slowed down as well, and we seem to have a recipe of fear rolling across the board. The theme of the day is obviously "Fear On" and "Risk Off." As the "big boys" get rocked, long positions across the board are being liquidated. Will Chinese demand take a step back or surge higher? How will "Trade Wars" between China, Brazil and the US affect prices? Will dry conditions adversely affect grain production in Ukraine and Russia or will their supplies continue to weigh on the markets? With ethanol margins shifting quickly on massive fluctuations in crude oil prices, will ethanol demand start to fade? How drastically will increasing "Feed Wheat" demand hurt corn prices? Are you looking for the insight on what the "big boys" are predicting for "Total Harvested Acres?" How will new acreage adjustment in both North and South America affect next year's crop? Will input cost continue to rise or is a set-back coming?
If your looking for answers to these questions and many more make sure you are getting my daily e-mail. We have made some terrific cash sales and have some fantastic hedges in place, preparing ourselves for just this type of move. If you are not receiving our daily e-mail make sure you get signed up for the FREE Trial by following the link. There is absolutely no cost or no obligation. Sign Me Up For FREE "The Van Trump - Farm Direction Report"
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