New Month But It’s The Same Old Story; The Markets Were Hammered Again This Week
There was plenty of excitement last week with the ongoing war in Ukraine, crop losses in South America due to dry weather, and the USDA Prospective Plantings Report and the Grain Stocks report. There was plenty of bullish news and yet the grain markets struggled. The USDA numbers for corn and wheat were bullish. Yet they both sold off after the rally and closed the week lower than before the report. The bean acres were bearish with the USDA anticipating more beans will be planted in the United States.
Commodity Broker Gordy Kralovetz with Chiodo Commodities said the pattern is just like last year. The markets were rallying and some entity came in and just hammered all markets even with friendly news. Gordy said it could be the funds, commercials or some group of individuals. In the days with open pits you had some idea who was selling by knowing which traders handled those accounts and if they were buying or selling. Today you have no way of knowing when the trading is done on computers.
But, as Gordy has said many times, "the real world is out there" and world production is dropping with the weather and war in Ukraine. Click on the link and listen to Gordy talk about the markets last week.
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