Hello Kansas Wheat.
Call it the Trump Rally if you voted for him, or something else if you didn’t, but the stock market, and many (not all) commodities, continued their surge this week.
This is a chart of the March Dow Jones stock market futures index:
The stunning reversal as the election results trickled in is pretty clear in mid-November…and it hasn’t really looked back since.
Crude oil, cotton and copper have benefitted.
The grains and oil seeds are up for the year as well, although as we enter the key planting seasons, I believe “fundamentals “will dominate trading, instead of a “investment” mentality.
That does not mean the rally is over.
It means that good rains, or the lack of them, will garner the headlines.
Typically, betting against spring rains is not a winning strategy, as it almost always rains in the spring. I doubt this year will be any different, but am willing to admit I heard “one year it never did rain” …
And as far as wheat goes, there is no denying it is extremely dry. Way too dry for comfort…