What to Watch for in the Markets this Week
Markets were closed on Friday in observance of the 4th of July Holiday. It was a short but eventful week last week in the markets. Following the long weekend, many traders are probably wondering: where do we go from here?
That’s the question Standard Grain’s Joe Vaclavik asked on his “Grain Markets and Other Stuff” Podcast.
Vaclavik… “Where do we go from here? So you got your report. You got it out of the way. Could we have another couple of days of follow through upside? I hope we do. I hope we certainly hope we do no guarantee by any means. But once the market has digested this thing, we're going to look back at this weather situation.”
“...And, and I think that that still is kind of a maybe friendly factor here. Short term, you've got some warmer and drier weather coming into some of the corn belt. I think that's going to be probably the biggest issue here over the next couple of weeks. You've got another report on July 10th, which is Friday. In that report, USDA may adjust its yield number. If anything, they probably go higher given the crop ratings. You could see some demand adjustments. So you've got another report coming here, which is another thing that could very well be a market mover.”
“...Keep an eye on demand. Especially the ethanol situation, which has continued to improve. I think we've seen eight consecutive weeks of improved ethanol production, but we've got to keep an eye on the demand situation and hope that USDA. Is light with their demand estimates for new crops especially.”
Markets open back up today as we continue to watch these commodity market developments closely.