Ok class, take your seats. It is time for today?s lecture.
I will admit that psychology wasn?t my favorite class in college, but it does give us some insight into the way people think and react to certain situations. However, it is a little unusual to think about a marketplace acting that way.
On this morning?s Opening Market Podcast, I talked with Jim McCormick of AgMarket.Net. We talked about the cloud of uncertainty that is floating around the marketplace, especially with the talks surrounding the debt ceiling and more Chinese cancellations. McCormick says that in the reactions that the markets are having, corn and soybeans broke through some symbolic points in the new crop months.
Planting progress, while good here in Iowa, is not so good in other states to our north. However, that isn?t enough to put support under the markets, as most of the country is set up just fine.
McCormick is hopeful that the upcoming Memorial Day Weekend will give the markets a pause, and a chance to correct this negativity we are facing.
Outside markets and earnings are also making things interesting out there. While we get some retailers with companies having good reports, others are having poor reports. McCormick says that American consumers are still not behaving like the Fed would hope they would.
McCormick wraps up by talking about the psychological effects that defaulting on the debt ceiling could specifically have on Ag markets.
