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Expanded Limits & Today's Market Action

By: Lindsay Fager, Risk Management

Expanded Price Limits for 6/8/21

Corn $0.60

Soybeans $1.50

Soybean Crush $3.095

Soybean Meal $45.00

Soybean Oil $0.055

 

Lean Hog $0.045

Lumber $63.00

See table HERE

 

Today's Market Action

From Arlan's Morning and Midday Commentary:

-The dollar posted its largest one-day gain in 15 months, triggering more selling in the commodities. Prices continue to hit sell-stops as they fall, leading to more traders exiting positions while amplifying the downward move on momentum selling.

-Crude oil prices are modestly lower on the sell-off in the broader commodity sector, while the Ags are sharply lower on the Fed headwinds, along with anticipated rains in dry areas of the Midwest Corn Belt in the coming week and on rumors the Biden Administration will ease biofuel rules.

-The latest round of selling started Friday when news hit the market that the Biden Administration was considering relief from biofuel blending requirements for the energy sector. It's still unclear what that might be beyond what the Trump Administration tried, but it created fear among speculative longs. Then the weather models flipped wetter over the weekend, raising fears among speculative bulls that we are facing a major pattern change over the coming 10 days

-Fed Chair Jerome Powell tried to stick to his message that inflation is transitory, but the board isn’t focusing on that. It’s focused on its asset purchasing program, and it currently sees no reason to start tapering its purchases. Powell has repeatedly emphasized in the past that there is no reason to raise rates before sometime in 2023. 

 

Other Interesting Points:

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