- For those who drool over government numbers, Wednesday is a day for you as the May Consumer Price Index, June USDA guesses, and US FOMC interest rate announcement are all on the docket.
- Regarding the FOMC, Fed fund futures continue to indicate no move on interest rates until at least the September meeting, if not November.
- As for USDA's nonsense, most folks will be paying attention to made up new-crop numbers while the imaginary old-crop numbers could be more interesting.
Morning Summary: It’s early Wednesday morning, and we are looking at another day of having to run a gauntlet of government numbers. Things get started early, 8:30 (ET), with the release of the May Consumer Price Index (CPI). I’m not sure what all the hubbub is about, for we know the US (as well as the rest of the world) is still seeing inflation. Such is the ripple effect of trade wars and tariffs. But anyway. Once those numbers are unveiled and argued about, the Grains sector will get the release of USDA’s latest supply and demand guesses. While most of the focus will be on new-crop projections, even though we know next to nothing about the actual crops at this point, the real interest could be in what USDA does with its old-crop corn and soybean demand estimates. These could change ending stocks guesses, and therefore new-crop beginning stocks. And when that set of kidney stones has been passed, this week’s 2-day US Federal Open Market Committee meeting will conclude with the expected announcement of no interest rate change. The focus should be on what Chairman Powell has to say to go along with the announcement. As usual, I’m looking forward to today’s close.
