Friday morning
We received more good economic news for the US economy at 7:30 Central this morning. The US economy added 311,000 jobs in February and the market expected only 205,000 jobs.
The market knows a better economy means the Federal Reserve thinks that means more inflation, so the Fed will increase interest rates faster and higher than expected before the report was released.
In order to choke the economy to slow inflation; higher interest rates and a good economy means a stronger dollar, which makes US products more expensive to foreign buyers.
Higher interest rates reduce profitability and makes it more expensive to store everything, including grain.
Let us set the record straight. The following is a list is the price change from the settlement on February 24th to the prices for the contracts 12 minutes after the employment report was released this morning:
Yep, that is ugly. And it hurts us as much as does you because we have to earn your business every year. Like you, there are no commission for us. Our entire income for one year is "in the bin" so to speak and the value is crashing.
We have been doing this grain marketing stuff long enough to have experienced many ugly situations just like this funk we are in the past month. Yes, we were and still are bullish, yet, prices went down. Before you conclude we don’t know what we are talking about, read what has changed since the 24th of February and if you still think we should have told you to sell corn, beans and wheat, please let us know, really, tell us. Everything below was in an email sometime since February 24th: