Dow futures gaining 216 points this morning at 23,815. US $ lower and Crude $0.38 higher at $46.62. Spot crude at the lowest level since Aug of ’17 as pressures from oversupply and demand concerns mount.
Chinese soybean sales rumored yesterday at just under 1 mmt. Confirmation this morning? Even the JV squad starting to understand that the current price level is unsustainable, even if exports were to grow 300 mln bu above current projection of 1,900 mln bu.
Not a political statement, just an observation. The squabbling in DC over $5 billion is like you or I discussing if we should go out for dinner at a nice restaurant. If I do the math right, it’s like one tenth of one percent of the US budget.
The Fed expected to raise interest rates today by a ¼ point. May also cut the number of hikes it anticipates next year and signal an earlier end to its monetary tightening.
CZ19 at $4.04 is $0.32 ¾ off the ave high of the CZ contract the previous 4 years and $0.66 ¾ of the 4-year ave low.
Biggest move in soybean basis yesterday saw Quincy up 15 cents. St Louis market also firming.
CHCK and CHCN 8 and 14 ½ respectively.
Markets are going to need a shot of news soon or may run out of gas………………..
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