After the election, markets have seen all-time highs, and the U.S. dollar has rallied to a 13-year high. According to John Payne of Daniels Trading, cotton, copper, and soybeans have been performing well post-election.
Cotton harvest has slowed in Texas from high wind, causing prices to spike. Payne said there’s a valuable lesson to be learned moving forward.
“The story going forward is not going to be about production, it’s going to be about getting it out in time,” said Payne.
While corn demand isn’t as high as soybeans, Dan Hueber of the Hueber Report said it’s “solid,” and “coat tailing with the soybean market.” For months, said Hueber, corn has been blasted with bad news including larger production numbers and changes in acreage, but the market is holding.
“We’re really at that stage of moving from the supply mentality to more of a demand mentality,” said Hueber. “I think we have the worst of it behind us, but probably limited upside potential at that point as well.”
Payne said while the physical supply for corn is there, he’s looking for a speculative demand.
“[In soybeans and cotton] we’ve seen speculative buyers come in and push the price, but in corn and wheat, we still have a stagnant picture with the shorts are in the market and has been really difficult to [break] out,” said Payne.
Listen to Hueber explain why now is a good time to take advantage of 2017 prices and Payne discuss the volatility in the markets over the holiday season on U.S. Farm Report above.