Corn futures and soybeans continue to chop around as participants wait for new news to give the market a new direction. We would not be surprised to see the market hold bid into the weekend where we may get weather premium and trade talk premium.
The path of least resistance is higher, this is undeniable. The U.S economic data is underwhelming at best and hopes of turning a corner were dimmed yesterday with another weak read on Manufacturing PMI.
We aren’t holding our breath for a trade deal but acknowledge that continuing talks is a good thing and a deal will be done at some point, even if that means years from now.
Yesterday was a constructive session, pullbacks held technical support before closing strongly on a tailwind from news that the U.S and China will soon resume talks.
U.S benchmarks firmed-up yesterday from Friday’s late selloff and are extending gains this morning after President Trump announced a bipartisan deal to lift the debt ceiling and boost spending.
Crude Oil is up about 1% this morning but trading off its overnight high of 57.04. Price action was suppressed through much of Friday until news broke that Iran seized a British tanker.
U.S benchmarks slipped sharply into Friday afternoon as Fed rate cut expectations for next week’s meeting were toned down. The table was really set Thursday afternoon when NY Fed President Williams said the Fed should act preemptively to battle slowing growth.
