Highlights, Pound, Broilers & Ethanol, Markets & Rain Days Update 9/29/22
Yield report Lewis County, extreme NE Missouri: Corn not quite as good as last year's corn. Soybeans are half; dry August.
The US dollar was sharply lower yesterday and just about everything else was higher yesterday. Even the stock market was up (Dow up 548 points) even though Apple said its sales of the newest I-phone were very disappointing.
The reason for the dollar weakness was Bank of England staged a dramatic intervention to stave off a supposedly imminent crash in the gilt market (British government bonds) by pledging unlimited purchases of long-dated bonds. This action countered its new supply-side economic principled prime minister. Imagine inflation as a fire. One group (Bank of England) is spraying diesel fuel on the fire while another (prime minister) is spraying water. That is what is happening with the British Pound and their economy. The BOE bought over a billion pounds’ worth of bonds yesterday afternoon (morning our time) and that sent the US dollar screaming lower and the British pound screaming higher. The BOE said it will buy bonds every business day until at least October 14th. Will that keep the dollar from rising? Probably not, but yesterday, the pound gained 6.4% on the US dollar.
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