MN Broker Markets Worried About Fed Meeting & Interest Rates
Commodity Broker Gordy Kralovetz with Chiodo Commodities said we began last week with the grain markets worried about losses in the stock market and the Fed meeting. There was a lot of concern that the Federal Reserve would be more aggressive about raising interest rates to fight inflation. This caused huge swings in the DOW. Gordy said early in the week if the DOW could stabilize the grain markets should be able to go back and focus on South America weather and palm oil prices. That is what ocured later on the week!
Malaysian palm oil set a number of record highs and closed at a record high last week. About one third of the veg oil market in the world is supplied Malaysian palm oil. They have had bad weather that cause the rally in prices. Soybean oil can be used instead of palm oil so, the shortage of palm oil has greatly increased the demand and price of soybean oil. That of course supported bean prices.
Then there is the weather in South America. Argentina did receive some very beneficial rains last week that stabilized their crop. However, weather in Brazil is still far less than ideal. Their crop was downgraded a number of times last week. Click on the link and listen to Grody talk about the ag markets last week!