CPI comes in higher than expected

Overnight- Corn and wheat futures higher and soybean futures are flat.

The CPI reading came in higher than expected. It was +.04% month over month and 3.8% year over year.

Inflation is not cooling off and the Fed should be pushing back any planned rate cuts.

The chances of a rate cut at the June Fed meeting had dropped to 21% vs 56% before the CPI reading.

This is the kind of news that could get the funds to turn over with concerns of inflation longer term.

Tomorrow we have April WASDE.

Will the USDA make any meaningful adjustments.

There is room for them raise corn demand and lower SA production.

Our thought is they will kick the can and wait until later, but a neutral report will likely be supported as we go into planting.

Bottomline

CPI gave us the indication that inflation remains strong and interest rates will remain high through the summer at the very least. Look for better prices after tomorrow’s report NFC Grain Comments Options -new (34)

Sign up for text alerts from NFC! Enter your mobile number to join: