Trend shift possible for corn and soybean futures
U.S. corn and soybean futures are hanging around some lofty levels, but a market analyst says a change in the trends might be on the horizon.
Dale Durchholz, owner of Grain Cycles, says part of the uncertainty about commodity prices is due to questions about the Federal Reserve’s next move on interest rates, “Will the Fed on the next move raise interest rates a quarter, or maybe a half point, again? You keep wondering about that, you keep wondering about the economic implications of that.”
Durchholz says a couple of key indicators aren’t looking too friendly, “Cyclic trend, as far as commodity indices are concerned, it looks like we’re going to be on the soft side going into the very end of spring, early part of summer, and that will tend to be a little bit negative overall as far as grain markets are concerned.”