While soybean prices sold off on Friday, longer term global demand will be the key to price recovery. For most of 2017, the market has been under the pressure of large grain supplies and big production prospects. Jim Bower, with Bower Trading, feels the market is not turning its attention to the expectation of greater world demand, “It feels to me like the global aspect is starting to lift up some of the commodity prices and take the attention away from the supply concerns. We are seeing the U.S. make sales to places we have not done business with for a while.”
Bower says good examples are the wheat market, which had good export sales last week, and the cattle market, which jumped over $3 on Friday. “The real factor that is moving the cattle and beef industry is coming from international demand,” he said. “Other nations want a high quality, safe, and reliable source of beef and dairy protein, and they know they can get it from the U.S.”
Bower says continued global economic growth may be a key to higher market prices in 2018, “With the top 45 nations in the world having a positive growth in their GDP, we are beginning to see for buying power for dairy and meat.”
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.