More Powell and Crude Oil Numbers+ Levels for June 22nd

Bullet Points, Highlights, Announcements

By Mark O’Brien, Senior Broker

General:

As of this typing, Federal Reserve Board Chairman Jerome Powell just wrapped up testifying before the House Financial Services Committee. Tomorrow he’ll testify in front of the Senate Banking Committee. These congressional appearances come on the heels of last week’s FOMC meeting where the central bank decided not to raise interest rates for the first time in eleven meetings. The key take-away: while inflation has eased – to just above 5% – the campaign to see inflation back to the bank’s 2% target “has a long way to go.” Moving at a pace that includes holding steady at this point, the chairman explained, will give policymakers time to analyze how higher rates are working to slow the economy.

Agricultural

Starting June 1, after a ± two-month / ±$2.00 price drop to below $13/bushel, July Soybeans have soared to today’s $15.19½ / bushel closing price, a ±$10,000 per contract move in 14 trade sessions. July corn prices started their lift-off a couple of weeks earlier and they’ve gained ±$2.00 / bushel – another ±$10,000 move – as well, as of today’s close of trading. U.S. crop conditions continue to worsen according to recent reports and forecasts for waves of cooler, wetter fronts returning and traversing a large area of the U.S. growing region into this weekend have been almost completely discounted.

Metals

Aug. gold traded to 3-month lows today, touching $1929.30 / oz. intraday, continuing a ±month and half slide from its spike high above $$2,100 ounce on May 4th.

Softs

Sugar (basis July) remained near ±12-yr highs around 25 cents / pound, but has remained choppy since its first foray to these highs back in April. Traders keep an eye on news related to Indian and Brazilian cane crop development in these important growing regions, particularly as the monsoon season approaches as this will provide guidance to this year’s crop development.