Reinflation trade?

Overnight- Corn and wheat futures were higher and soybean futures were lower.

The May corn moved over 4.35 which could give us a chance to get back in the 4.40’s and maybe challenge last week’s high.

The soybeans are having trouble shaking off their dismal export situation while soybean crush remains strong it cannot counteract the lack of soybean export demand.

Fed speakers yesterday were taking a hawkish tone on rate cuts and with today’s strong jobs report the chance of a June rate cut is moving lower.

Will the funds decide they want to own commodities for a reinflation trade?

This might be the bullish fundamental the grain market needs so we will be watching the macro numbers closely. CPI will be out next week.

Bottomline

The macro-economic picture could be shifting away from multiple rate cuts this year and this could be supportive the commodity markets going forward. Weather in Brazil is non-threatening weather-wise, and the ECB is wet so could slow the early planting season on that side of the MS River. US weather moves to the forefront of traders’ minds now. NFC Grain Comments Options -new (31)