Global markets are trading lower this morning as investors digest US GDP data. First quarter results came in at 2.5% annually adjusted. Although consensus estimates were for 3%, it shows an improvement over a .4% increase in the previous quarter.
Crops:
Crops are all posting negative movement in the early session. There is an expectation of a record number of corn acres planted globally (a 10% increase over last year’s levels) according to an International Grains Council report released yesterday. This year’s harvest prices appear to be currently locked in the $5.20 to $ 5.30 region. According to Twitter, there was a large investment dealer buying puts as low as $4.50 (a put gives the buyer the right to BUY at that price – in this case, an investment in prices going lower by harvest time).
Livestock:
Livestock prices are trading solidly in the green this morning. Better weather across the “grilling” states is being cited as the reason for price optimism.
Bottom line: Look today at price action at the close. The recent move has been to take profit by week’s end.
Disclaimer: This commentary is provided for information purposes only and is not intended as advice