Rains across the Midwest

Overnight- Grain and oilseeds traded a little higher.

Price action for the 1st two days of the week has not been positive.

Fed Chair Powell gave hawkish comments yesterday saying the recent inflation data does not equate to rate cuts in the near term.

Some banks are thinking no cuts this year and possible rate increases in late 2024 or early 2025.

The PCE index will be released next Friday and will be a major factor for the Fed.

The US$ Index has spiked over 106.00 after the inflationary concerns.

At some point, we are looking for some price appreciation in the grains and oilseeds due to inflation and it will likely take the fund flipping long for it to happen.

Planting progress seems to be going along well and we should see a big jump on Monday’s report.

Bottomline

The weather here and in South America is very conducive to planting progress and production but that needs to be priced in by now or close to it and then we could get a relief rally. Watch local basis. NFC Grain Comments Options -new (39)