The Fed’s hawkish tone has the USD up!

And the grains were down yesterday as the soybeans continued to lead the way lower. The Fed left rates unchanged on Wednesday but projected a hawkish tone at the press conference. What does this mean? They left the door open for 1 or 2 more quarter hikes but the likely weight on markets is the “higher for longer” argument. This pushes the possibility of the 1st rate cuts well into 2024. This has the USD up over 50 ticks. Many commodities were selling off yesterday in response to the higher USD as it moves towards the March highs. We will likely need to see the USD rollover before we get any kind of extended rally in the corn and soybeans. We still have some positive signals out there as mostly lower yield reports compared to last year and South America is running into weather issues as Brazil starts planting soybeans and 1st crop corn. For today, we will use 4.74 & 12.84 for support and 4.82 & 13.14 for resistance. NFC Grain Comments Options -9.22.23