When it comes to the volatility we have in the markets, they are usually most affected by politics, inflation in the economy, and our production numbers. This week, all three will come to bear on the Ag markets as we have a busy week of information. Tuesday will see mid-term elections, Wednesday will be the World Agricultural Supply & Demand Estimates (WASDE), and Thursday will give us inflation numbers.
Feels like a perfect storm is brewing.
Greg McBride of Allendale joined me for our Opening Market Podcast this morning, and we talked about the power all three of these will have on our markets, even though we don’t have any certainty as to what will happen yet. On politics, McBride says that the elections could be a turning point in the making. A lot is riding on this election for agriculture, including the Farm Bill in 2023.
Globally, Russia and China are giving the markets concern for different reasons.
I asked McBride to peek into his crystal ball for the WASDE report. He believes the sector that is most ripe for changes in this month’s report is corn.
McBride doesn’t feel there is enough movement in beans to warrant a huge change at this point.
As far as inflation goes, McBride says we could see a lower number in this week’s CPI report, but that doesn’t mean that we are seeing a full downswing in inflation.
It certainly could shape up to be an interesting and volatile week. It’s times like these that I think about a line from one of my favorite movies, “The Hunt for Red October”: