Have you heard about this 20 minute trade?
Some days, it doesn’t take much to get this market moving.
Yesterday was one of those days.
We got the latest inflation read, which came in at 2.7% versus the expected 2.8%…
Just one-tenth of one percent and the market took off like it just heard the starting gun.
Why?
Because traders are still frothing at the bit for a rate cut.
And this gave them just enough of a glimpse to start dreaming about one.
Now, whether they’re right or not… we’ll find out soon enough.
Thursday’s PPI could be the real tell — and if it comes in lower, you can bet the “rate cut hope” crowd will be out in force.
Meanwhile, gold didn’t care one bit about today’s CPI number.
It did nothing. Completely flat.
That’s surprising, but hey — sometimes the market just shrugs at the obvious play.
On the Agriculture Side
World ag supply numbers came out today, and corn and wheat did exactly what we expected — sold off some more.
The surprise, though, was in soybeans.
Instead of following the pack lower, soybeans took off and rallied hard.
Why? Lower acreage.
Less planting now means less supply later… and that’s usually enough to send prices higher in a hurry.
So while the rest of the grain complex is limping along, beans are suddenly the belle of the ball.
Between inflation prints, PPI on deck, and these surprise moves in agriculture markets… it’s shaping up to be an interesting rest of the week.
Stay sharp,
— Geof
