Fed stimulus plan boosts commodities

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Corn futures are trading 11 cents higher at midsession. Prices continue to react bullishly to the Federal Reserve’s stimulus announcement. The Fed pledges to buy approximately $40 billion dollars of mortgage backed debt each month until the overall health of the economy improves, sparking renewed buying interest commodities by investors. Higher outside markets and the lower dollar index are favorable for prices as well.

Soybean futures are trading 13 to 14 cents higher at midsession. The market posted solid double digit gains during the overnight session. Futures are reacting positively to the Fed’s announcement to take aggressive measures to stimulate the ailing U.S. economy. Long term bullish fundamentals will continue to support higher prices while today’s lower dollar index should provide and additional boost.

Wheat futures are trading impressively higher at midsession. Prices are higher across all three exchanges this morning supported by the lower dollar index and fresh fiscal news concerning the economy. Prices continue to move higher on yesterday’s Federal Reserve announcement to take more aggressive measures to boost the economy. As a result wheat futures at CBOT and KCBT have risen approximately 3 percent, trading 25 to 26 cents higher.

Live cattle futures are trading lower at midsession. Prices remain under pressure as traders bank profits after the futures hit a record high early Thursday on cash market strength. Prices were reported $2-$3 higher than the previous week. Weak export sales, rising corn prices and lackluster wholesale beef prices are other bearish factors affecting the market.

Lean hog futures are trading higher at midsession. Midday price support is tied primarily to trader optimism that prices have hit bottom and are soon to rebound. Higher corn prices are supporting 2013 contracts, which are up about $1 as of this writing. Hog slaughter remains high and is expected to limit upside movement in the nearby contracts.



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