Lower inflation data hits the $

The Consumer Price Index (CPI) came in lower than expected and has traders in the financial markets thinking the Fed pivot can come sooner than expected. The Fed will release its latest rate news today and most analysts expect a 50-basis point hike, but we will be watching Powell’s press conference for hints on forward guidance. The thought is hikes could slow but how long will they hold rates at these higher levels? How does this affect the Ag Sector? Usually, a softer dollar is good for commodity prices but with the run up in prices due to inflation we may get a mixed bag of results. If the dollar gets low enough to make us competitive in the export market that will obviously be supportive, but we are not there yet. Corn and soybean are lower in the overnight session with corn’s technical action being more negative. We will be watching 6.42 & 14.55 for support and 6.62 & 14.88 as resistance. NFC Grain Comments Options -12.14.22