The commodity markets found a little optimism heading into the Easter holiday. Mike Zuzolo, president of Global Commodity Analytics, says the weather forecast turned favorable for spring planting, and the markets took notice.
“We went into the Easter break at the Board of Trade and Mercantile Exchange with the idea that we’re going to open up the planting window, that the GFS and European models were both suggesting a wide-open window, a warming trend coming between now and April 15 and so that would put us on course for the majority of the primary Corn Belt getting a strong start by the time we get to April 20. That’s kind of our peak time period to get maximum yield.”
That put some headwinds in the rearview mirror, for now.
“We kind of walked away from the tight grain stocks report, we walked away from the near-record highs put in gold, we walked away from the OPEC production cuts, and we walked away from the weakening dollar because of fears of what’s going on geopolitically between China and Russia and a couple of other countries that used to be very good trading partners with us, and now we’re seeing quite a bit of trading resistance with them.”
One thing he is concerned about is the long-term demand for commodities. For more information, go to globalcommresearch.com.