Is this the peak?

Have we finally reached a peak?  No, I am not referring to a peak in commodity values, but rather for summer temperatures, which, of course, could walk hand in hand with many markets. Granted, one should not count the chicks before the eggs have hatched, but it would appear that many regions will be reverting to more normal temperatures during the month of August after today.  Unfortunately, that does not really apply to the regions of the country that have suffered the most this growing season, nor does it promise much in the way of rainfall. Still, cooler days and nights should provide some relief as our crops trend into the final stages of this year.

I mentioned yesterday that three of the FAANG’s were reporting quarterly results, and they did not disappoint.  Microsoft, Apple, and Alphabet (Google) chalked up combined after-tax earnings of $56.8 billion, which was 30% more than Wall Street had predicted.  A bit closer to home for the ag sector, we have also seen quarterly reports for the CME and ADM, and both were solid as well. The Merc reported revenue of $1.2 billion and operating income of $675 million for the second quarter of this year, producing a net income of $510 million.  This worked out to diluted earnings per share of $1.42.  At Archer Daniels, they posted a record for second-quarter earnings of $1.26 per share, coming from net earnings of $712 million. The Ag Services and Oilseeds division saw operating profits climb 40% over the second quarter of 2020.

In macros this morning, we have equities struggling as coronavirus cases and concerns rise around the globe.  Financial instruments are soft but are basically marking time in front of the FOMC meeting this week.  Metals are mixed, but gold acts more and more as if it has lost its shine, and energies are higher.  Crude oil made an impressive recovery from the collapse early last week, but I believe this may be little more than the last hurrah before prices turn lower in the fourth quarter of this year.