No rate cut = Higher for longer

Overnight- Grain and oil seeds are higher across the board.

The Fed left interest rates unchanged yesterday, which was no surprise, but Chairman Powell’s hawkish tone has the market discounting the odds of a future rate cut this summer. Will this spark our inflation trade in the Ag commodities?

Weather delays continue for much of the Midwest but will need to see longer term delays for a weather rally, but it is a futures market, and we may get the move sooner rather than later.

Rains in KS are trimming some of the wheat stress in that area. Blace Sea wheat stress remains as rains continue to miss.

Weekly exports were disappointing, but March soybean crush was an all-time high and March ethanol grind was the 2nd highest for March. Demand is not that bad.

Bottomline

We have a higher trade overnight. Watching the 100 day in July corn at 4.60 and the 50 day in July soybeans at 11.84. Closes above these levels will be positive and could get a higher move into the weekend. NFC Grain Afternoon Comments. (41)