Last week, Brazil was launched into a political scandal after reports President Michel Temer was involved in a cover-up scheme. One of Brazil’s largest newspapers reported a recording of Temer exists of him approving a payment to the mastermind of 2016’s impeachment of former president Dilma Rousseff.
That tape was then turned over by executives from JBS SA, a meat-packer in Brazil.
As a new week begins, Jim Bower, president of Bower Trading, told AgDay host Clinton Griffiths to watch the situation because it is fluid.
“Hopefully we can generate some business of our own in the United States from what their loss is,” said Bower.
Looking forward, Bob Utterback, founder of Utterback Marketing Services, thinks there’s an opportunity for the market to rally. Utterback considers himself a bear, but says at the moment he’s in hibernation.
“I’d like to see good volume gaps,” said Utterback. “If I can start seeing that, I think by Wednesday, the market will confirm Thursday and Friday’s action was a short-term reversal.”
One concern in producers’ minds is if there could be a rally in the next five weeks. For Bower, he says watch China.
“They’re the large scale consumer demand pull opportunity,” said Bower. “If you’re going to make a decision, but don’t wait too long. Be prepared for what you do or do not want to do for pricing.”
Watch Utterback and Bower on AgDay above.