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Senior Contributor

OptionEye Morning Market Macro Outlook - April 17th

Happy Good Friday Eve.

 

Corn and beans pretty much unchanged. Wheat bouncing back 7 cents.

 

The wheat market has been all over the place and continues again today. We have supply concerns again with the Ukraine and weather in the U.S. What else is new.

 

Stocks are a little better as jobless claims come in a tad better than expected.

 

The oil market still sky high at $103.92 up .16 cents. Gold is right at $1300 trading at $1300.60 down $1.95.

 

The dollar is lower at 79.68 down .11.

 

Have a great holiday.

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Senior Advisor

Re: OptionEye Morning Market Macro Outlook - April 17th

As per usual I have some real questions about the 'Big Picture'. In regards to wheat's tremendous and unexpected sales and inspections - who is buying (sales) the wheat that is supposedly noncompetitive, paying the freight when there is supposedly adequate wheat in the world? I assume there's a report out there substantiating this latest sales report.  The information would be revealing.

 

As for wheat volatility, I think the biggest part of day to day is rain in the southern Plains - or the reports of and the lack of percip. Maps keep showing rain, we keep getting reports from the ground of the lack of it.

 

The commments about the Fed 'throwing money at it' and 'we don't know what to do' stated as 'we' is misleading. You're right in that the Fed's mandate of protecting the economy and supporting job growth with no support from Congeress does have it in a position of having few tools to work with. Those who believe the Fed can act so as to stimulate the economy w/o Congressionaql help are quite misguided. So the Fed buys paper from the financial sector to convert them into cash - which isn't making it out of the financial sector except if one invests in and then sell equities at a profit (calling the bottom AND the TOP and converting back to cash which doesn't really help the economy as there isn't enough buying pressure from a tapped out and wary consumer sector to stimulate investing in services and production.

 

Until Congress acts we are stuck. Jobs need to be created to kick start the economy. It's not happening and it won't, which is very satisfactory to some who want to try and take advantage of the situation in a blame game. The middle class will continue to stay in its shell.

 

Luckily we are in the farm sector and we enjoy all kind sof government programs and support from all angles, and we are doing very well, thank you.