MN Broker Said Bears Were Keeping Lid On Market For The Feds
The last couple weeks the grain markets have been a little week. We would get pushed down, then find a way to come back only to repeat the cycle. This seems to be the classic definition of range bound. While it is a little frustrating to spend so much time going nowhere, the positive side is we have $12 cash bids for beans and $5.65 a bushel for corn. Commodity Broker Gordy Kralovetz with Chiodo Commodities said it seemed like the bears were trying to keep a lid on the markets to send a message to the Feds!
The Federal Reserve board was meeting last week and the funds and other large business did not want the Federal Reserve to raise interest rates. On Thursday afternoon the Federal Reserve minutes were released and we found out that there would be three interest rate hikes in 2022. But, they would be very minor so the grain markets assumed that would be a quarter percent each time. The market liked that and we had a big rally in corn, soybeans and even wheat!
By the close Friday it was another ho hum week if you just looked at the weekly close but there was a fair amount of market action back and forth! Click on the link and listen to Gordy discuss the market action last week.