Last week we saw the US economy and the world market continue to show signs of rapid growth, yet the commodity markets stayed quiet and calm. U.S. jobs and salary data out last week showed the economy is heating up. Energy and equity markets were volatile, and the dollar began to recover from recent lows. Jim Bower, with Bower Trading, says world economic growth is red hot which will, in time, straighten corn, soybean, and wheat prices, “For the first time in history, we have the top 50 world economies all with a growing GDP. That is why I think commodities at this price point are well balanced and will be purchased by these economies in larger amounts that most people think.”
Meanwhile, weather continues to be a factor. Winter kill and very dry conditions in the western wheat areas are keeping the market nervous, “If they don’t get some moisture soon, this situation with the hard red winter wheat crop could get serious, and we could see a very dynamic market by spring.”
Finally, the situation in South America is stabilizing with Brazil expected to have a bumper soybean crop, “Some people are talking a Brazilian soybean crop as large as 115 million metric tons, that would be a new record.” But Argentina is another matter. Dry conditions there may cut production, and that could be a short term market factor to watch.
For more market strategy information, contact Bower Trading at 800-533-8045 or bowertrading.com.
This material has been prepared by a sales or trading employee or agent of Bower Trading Inc and is, or is in the nature of, a solicitation. This material is not a research report prepared by Bower Trading Inc. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.
The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Bower Trading Inc believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.