Heat and a 3-day weekend!
The Federal Reserve did raise the Fed Funds rate 75 basis points as they try to catch up with inflation after the big CPI reading last Friday. They also project the Fed Funds rate to be 3.4% by the end of the year which will require another 175 basis points worth of raises. Initially the stock market and bond markets liked the move and both moved higher but overnight they both fell back and the stock market is putting in new lows for the move. Turning to the grains, all markets were higher overnight as the heat bears down on the corn belt and we have a 3-day weekend coming at us. We are looking for firm trade today and if July corn can trade thru 7.83 we may get a run to 8.00 before the week is over. Support lies down at 7.60 & 16.90 for the July contracts.