Markets - General

CFTC says expanding trading hours would ensure markets remain vibrant, while commercial hedgers and commodity brokers who work with farmers say it will fuel volatility and won’t make the markets stronger.

Wednesday was a busy day for markets, ranging from metals and energies to grains and indices. Oliver Sloup got some added insight from Market Strategist Phil Streible and Head of Research Dan White.

The bearish tone of the grain markets, especially corn and bean oil, stems from a lack of progress on tariffs and trade deals as well as speculation regarding the blending mandates for biomass-based diesel.

“China and Brazil are getting together. They’re going to build infrastructure, and they’re going to make SAF and they’re going to build railroads, and it’s not good for us and our future. That’s why we need new markets,” says Iowa farmer Tim Burrack.

Equity markets saw some continued strength on Wednesday but the momentum has slowed. More volatility and movement was seen in commodities with markets like gold, grains, and cattle drawing attention.

May futures are in the process of printing a monthly key reversal. Ironically, this is just what it did five years ago in August 2020. Coincidence you might think?

The market might not be as hot as it was two years ago, but it still sizzles. The economics of low supply and strong demand are keeping prices fairly stable with only slight reductions seen this spring, depending on the location and quality, says Colton Lacina, Farmers National Company.

While 56% of farmers say they believe the ongoing trade disputes with China and other countries will hurt them financially this year, 70% say they believe the U.S. and agriculture specifically will benefit in the long-term.

Fed Day has came and now passed. Outside markets saw little fluctuation while other markets such as corn, gold, and crude saw bigger daily swings.