IARN — The markets finished in “big red numbers” on Thursday, according to a market analyst.
Grain markets closed sharply lower – to say the least – on Thursday. Corn was limit down 40 cents, while soybeans encountered losses of 90 cents-to-$1.07. Wheat was also in the red, while the livestock complex took some hits as well.
Bill Moore is a senior account executive and author of The AgMaster Report for Price Futures Group in Chicago. Shortly after Thursday’s close, he told IARN there were several factors that led to the bearish day.
“Jerome Powell of the Fed was talking of inflation and that they may have to jack up the interest rates sooner than they thought,” said Moore. “We’re still talking well over a year away, but the markets didn’t like the sound of that. That was enough to get the ball rolling. In addition, they put more rain in the forecast for the grains over the next 7-10 days. That was bearish.”
Moore adds a poor U.S. Export Sales Report on Thursday morning didn’t help the situation.
“If you look at the export sales from this morning, holy mackerel, they are next to nothing,” said Moore. “Two hundred and eighty thousand in the wheat, corn at 294,000 tons, beans under 100,000 tons. Corn and beans have been 1-to-2 million on these sales sometimes. China has really backed off. Maybe there has been demand rationing taking place. It’s kind of a perfect storm with bearish stuff.”
Allendale, Inc. has reported that limits have been expanded for Friday.
Story courtesy of the Iowa Agribusiness Radio Network
Photo by Barchart