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.
Outside markets are somewhat mixed to start the morning on what is the 25th Anniversary of the 1987 US Stock Market Crash. It seemed as if Google was trying to kick-start another crash yesterday with such a huge earnings miss on an early release. There were also disappointing earnings out of McDonalds and Chipotle as well. US employment numbers were weaker yesterday, but there seems to be more positive data being released in regards to the US housing sector. As far as the energy market is concerned I thought it was interesting to hear Goldman Sachs now predicting an end of a "sustained increase" in crude oil prices that started a decade ago, basically saying that the oil market will find a new equilibrium around $90 a barrel (Brent Crude price) due to rising oil supplies from the US and Canada. This is an important change considering Goldman was highly influential and one of the first to anticipate the big jump in oil prices back in 2005. The bank has maintained a bullish view on oil prices since, and from my perspective seems to be turning a little more bearish. Overall the "outside" markets are mixed this morning, but if more concern hits the US stock market I could see some additional risk being taken off the table as we head into the weekend.
As for today, the trade is trying to get there hands around a ton of interesting dynamics below is a brief overview:
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Van Trump Report
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