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Karl Setzer Grain Commentary

Morning Comments, Wednesday, November 21st, 2018

Stock Markets in Free Fall

Major market indexes continued their bearish course as markets closed deep in the red yesterday. The DJIA closed down roughly 600 points yesterday. The Dow also saw a 6.9% drop in just the month of October alone. Concerns over the rising interest rates has many believing we could see asset prices marching lower. The Federal Reserve, who is controlled by the industries top banking officials, has continued its rhetoric that interest rates must rise. The cost to rent money may have a much larger influence in the market place moving forward.

The need for a standardized futures contract for South American producers and commercial companies to hedge price risk is growing in popularity recently. South American trade groups have agreed that an open platform will give growers, buyers, and sellers, a liquid market mechanism to hedge and transfer price risk. The exact location for the new trading exchange will be located in either Brazil or Argentina.

Market Movers: Holiday Trade, Harvest Progress

For more information, you may contact Brock Beadle at 515-341-7040, or e-mail at bbeadle@maxyieldgrain.com. The opinions and views expressed in this commentary are solely those of Brock Beadle. Data used in writing this commentary obtained from various sources believed to be accurate. This commentary is intended for informational purposes only and is not intended for developing specific commodity trading strategies. Any and all risk involved with commodity trading should be determined before establishing a futures position.


 

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