The CPI was reported yesterday morning was 8.3% versus the expected to be 8.0% for July 2022 compared to July 2021. The cost of food was up 11.4% from a year ago, the largest increase since May 1979. For reasons that make no sense, many analysts thought the rate of inflation had slowed enough that there would be no need for the federal reserve to raise interest rates again. The media was touting for weeks the prospect of substantially reduced inflation as a “done deal.” Wrong. After four days of weakness, the dollar index settled higher yesterday than it was four business days ago and up 1.59 on the day. The Dow Jones Index was down 1,267 points.
In addition to the possibility of sanctions to punish China before they attack Taiwan, other short-term negatives for the soybean market include: