Ag Commodity Prices Rally Despite Tariffs07/09/2018
The reports of my death have been greatly exaggerated,” Mark Twain once famously quipped. The same could be said of soybean prices Friday – staring down freshly imposed Chinese tariffs, they nonetheless rocketed ahead more than 4.5% to close a holiday-shortened week. Corn and wheat prices also gained about 2% to finish the week strong.
Drought’s affliction on the U.S. continues to be fairly consistent, covering between 40% to 50% of the country for the past 16 weeks, according to the latest U.S. Drought Monitor. That trend could reasonably be expected to hold moving forward, with NOAA’s outlook for July/August/September calling for seasonally warm weather with not many regional precipitation anomalies predicted for the next three months.
Wall St. began Friday’s session with some “trade war jitters” but rebounded on solid job growth data, with the U.S. adding 37,000 more jobs than expected in June. The Dow closed up 100 points in early afternoon trading to 24,456. Energy futures were mixed, with crude oil up another 1% Friday afternoon to nearly $74 per barrel, while gasoline and diesel futures trended moderately lower. The U.S. Dollar softened moderately.