OptionEye - The Cow Guy - April 4th
Good morning everybody.
Seems like corn is sticking to this $5.00 level, dancing around either side waiting for the next bit of news. Overnight we are lower in corn by 3 cents, wheat is down 8 with soybeans carrying the day again, up 8 themselves.
Well,. today is the one day per month that we get a look at the main driver of the economy, jobs. The market expectation is for 200k jobs in March. It will also be the first number we get that isnt dramatically affected by the bad winter we had. March was a stinker too but not as bad as the winter.
Overall, it is very interesting to see this food and energy inflation creep into the economy, taxing the general populace everday, without even barely a mention .The government strips out food and energy in their inflation report but it is getting increasingly difficult to ignore the gas, pork , grain and beef prices skyrocketing on our kitchen tables. The jobs numbers have to be good or the country can't affort this daily tax.
Gold is up $5.12 to $1291.90. Oil is up .89 cents to $101.18. Not sure how long the country can afford $100 crude. At a minimum it will slow any serious recovery.
The stocks are quiet waiting for the jobs report and understandably so. The 10 year is the same, going into the numbers at 2.795%.
This will be a big one and then we focus on our ag report next week all the while worrying about the weather. Lots to talk about.
Re: OptionEye - The Cow Guy - April 4th
Why would more jobs reduce the 'tax' of energy and food? It's consumption. The more who have jobs the more there is likely to be consumption of meat and fuel which should raise prices further. Therefore increased jobs solves nothing other than increase demand.
The idea of calling increased prices from fuel (global market) and food (pork hit by a virus, yet cheaper feed than the last several years) a 'tax' seems to be an attempt to distort the meaning of the economics at play.