MarketsFarm – Grain markets on the Chicago Board of Trade are “falling of its own weight” due to removed technical levels and a lack of substantive news to influence markets.
“There’s just no news to generate any upside swing,” said Steve Georgy, President of Allendale Inc. in McHenry, Illinois.
“Some technical levels were removed, and that has generated some downside pressure.”
Traders are waiting to see if the United States Federal Reserve will lower interest rates, which will be announced later on Wednesday.
“That might have a bigger impact on the U.S. dollar,” he remarked.
A rally in the dollar would drive grain commodity prices lower, but if the Fed keeps rates unchanged, a lower dollar could provide a lift to markets.
Georgy suspects markets may find some support ahead of the August 12 World Agriculture Supply Demand Report (WASDE), on the speculation that preventative plant acres will be higher than initially reported.
“That anticipation will provide strength,” he said.