Farm Progress

Market price considerations for week of Feb. 27

The commodity markets could see more uncertainty than normal due to verbal guidance released by the Federal Reserve.

Bobby Coats, Professor

February 27, 2017

1 Min Read
Bobby Coats and Bert Greenwalt, agricultural economists with the University of Arkansas and Arkansas State University, catch up at the Agricultural Council of Arkansas annual meeting in Little Rock.

Fed Verbal Guidance intentionally or unintentionally has heightened general market risk and uncertainty, especially in commodity markets. At the very least market participants must consider the possibility of a rate increase at the conclusion of the March 14-15 Federal Open Market Committee meeting.

A rate increase would likely be bullish the dollar and supportive of a higher interest rate. All things equal this would likely have a:

  • Negative impact on commodity prices or hard assets in general, and

  • Impede the global reflationary efforts

For Dr. Coats' thoughts on the markets, visit http://www.deltafarmpress.com/market-reports/markets-await-trump-s-presidential-address.

About the Author(s)

Bobby Coats

Professor, Department of Agricultural Economics and Agribusiness, University of Arkansas System, Division of Agriculture, Cooperative Extension Service

Bobby Coats is a professor in the Department of Agricultural Economics and Agribusiness, University of Arkansas System, Division of Agriculture, Cooperative Extension Service.

E-mail: [email protected].

 

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