Gradually the skies are brightening for a host of physical commodities, but various headwinds remain in place into the sixth month of 2016.
Cotton
Technical Ag Knowledge
This is a sample entry from Tom Dosdall’s newsletter, Technical Ag Knowledge, published on Monday May 23, 2016. **Crop progress numbers will be released today @ 3PM (CST).** Ag Markets Jul ’16 Corn Corn is starting to look a little tired here at the top of the range and may need some fresh fundamental news… Read more.
Increased Odds of Growth in the US and Abroad
Just when it appeared that the commodity markets were overbought and poised to correct, the US Fed was found to be on-hold “to at least June.”
The Pace of Improvement Remains Difficult to Detect
The brightening of the economic skies continues, but the pace of improvement remains difficult to detect.
Fed Not Confident in Pace of US Growth
With the Fed taking a pass on hiking rates in September, a reduction in their 2016 and 2017 growth forecasts, and only minimal dissension within their ranks against a steady policy stance, it appears that they are not confident enough in the pace of US growth to make a move at this time.
Change Is In the Air!
While the world continues to be disappointed with the rate of recovery in the US, Europe and parts of Asia, the skies are clearing, and signs of improving US Payrolls, strong global auto sales figures and rising energy prices suggest that the economy is moving back towards normal.
Global Macroeconomic Prospects Are Improving
With a number of longer-term moving averages signaling reversals in several currencies, fresh record highs in a number of global equity market measures and crude oil prices managing to hold $10 to $12 a barrel above their 2015 lows, global macroeconomic prospects are improving.
Evidence of US Growth Has Pushed the Dollar Up
The US economy has bulldogged its way to growth in February, despite adverse weather, ongoing energy sector layoffs, adverse foreign exchange rate action and periodic talk of rising US interest rates.
Migration Toward a Global Recovery
Not surprisingly, the Euro zone debt crisis continues to linger, and the situation in the Ukraine remains highly fluid.
Market Spotlight: Cotton
Cotton is a natural vegetable fiber that comes from small trees and shrubs of a genus belonging to the mallow family, one of which is the common American Upland cotton plant.
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