Here comes the heat!
The outside markets put pressure on commodity prices yesterday as the stock market and bond markets sold off together. The higher-than-expected CPI numbers from Friday had the financial markets pricing in a 75-point hike from the Fed on Wednesday and possibly a 100-point jump. By the end of the day, Corn and wheat futures pared most of their losses while soybeans could not. Some analysts are afraid that this will start pulling out the inflation premium in the commodity markets and that funds will exit their longs causing more market liquidation. We are more in the belief that in the short term the markets will focus on the fundamentals which have not changed and with a heat wave moving across the US growing areas could be incredibly supportive price if it stays as long as forecasted. For today we will be focused on the July lows from yesterday of 7.58 & 17.02. NFC Grain Comments Options -6.14.22 (1)