Snapshot of Ag-Related Commodity Trends

Here’s a rundown of key near-term market factors impacting various ag-related commodities. Included are thoughts on current price direction plus trading ranges. U.S. equities continue to defy any recessionary concerns with the Dow and S&P testing fresh all-time highs. Should stock markets continue to melt-up, this will be supportive to commodities in-general. But nonetheless, grain markets have been hit hard. Asset values like real estate and equipment etc have depreciated substantially in some cases. The U.S. 4th quarter GDP just released this week was below expectations. With that said, here’s a snapshot of current factors impacting prices right now . . . .

The Cdn Dollar: After the June contract tested heavy resistance at 76 cents U.S., the loonie has been in a gradual downtrend. The Bank of Canada led-the-charge raising rates a few months ago. But the BOC may cut rates ahead of the U.S. Federal Reserve. Canada’s economy has been in-recession for the past ten (10) months despite all the bank and government denials. CANADA’SECONOMY HAS BEEN IN-RECESSION FOR THE PAST TEN (10) MONTHS. The BOC may be forced to cut rates by early spring. We’ll see . . . . The world market is aware of mounting concerns in Canada’s economy. This has been pressuring the loonie. Technically, the June Cdn dollar now has support at 73.50 cents U.S. A break of support suggests a possible test of 72.50 cents U.S. A sudden BOC rate cut would be bearish the loonie.