Will grains and soybeans ever go up? After yesterday, that is the question millions of people want to know. If you just look at CBOT action, yes, yesterday was a very bad day as new lows for the move were made in everything except oats.
When CBOT prices are in downtrend, it is because of one or more of the following:
Too much supply. USDA’s wheat and corn carryovers reported Wednesday were less than the market expected and the bean carryover was increased from a 17 day supply to an 18 days supply, 8 million bushels more than the market expected. When July 2022 soybeans traded to $17.84 last June, the carryover was a 22 day supply.
The economy is going into a deep recession or already there. The Dow Jones was up 1,201 points yesterday. The government reported yesterday morning the inflation rate at the wholesale level was two-tenths of a percent less than the market expected and down from last month, reducing the need for higher interest rates to retard economic growth. Four days ago, the market was expecting bad economic news yesterday and crude oil, lost $8 since then. Yesterday’s settlement for December crude oil was up 64 cents a barrel. Crude oil does not go up in recession.