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Futures Flying Inflation Returning?

Virtually everything rose last week – all commodities (agricultural and financial), real estate, wages, stock markets, bonds, foreign currencies, lumber, sugar, and even cryptocurrencies.

The Ministry of Labor published the consumer price index on Tuesday, which showed the largest 12-month price jump since August 2018. Much of that spike was due to gasoline prices, while other rises also appeared to have something to do with the economic recovery and confidence in the U.S. pandemic is finally about to ease.

Deficit spending, low interest rates and the “Dovish” Our Federal Reserve’s stance has all contributed to expectations that prices will rise. Low US interest rates contribute to a weaker US dollar, which in turn increases the cost of anything denominated in the greenback. Cattle futures were a rare exception. The rise in feed costs led ranchers to sell their animals as it became too expensive to keep.

As of Friday noon, May, silver was trading at $ 26.10 per ounce, June gold at $ 1,778, June gasoline at $ 2.05 per gallon, July sugar at 16 ¢ cents per pound per cattle for June delivery $ 1.19 per pound.

Biden imposes sanctions on Russia

On Thursday, the president announced that the US would impose sanctions and other financial measures against Moscow to retaliate against cyber hacking, troop building, interference in US elections and alleged bounties for US troops. In addition, the US has expelled Russian diplomats from Washington for alleged activists.

America is also watching China’s economic, military, and technological gains in terms of potential competition. The growing relationship between Russia and China remains worrying as these two powers together could dwarf the US militarily as well as financially if tensions escalate. Prices for everything from fuels to food to precious metals could skyrocket at any sign of escalation.

Too cool to plant

As the grain supply is relatively low and exports are reaching records, this year’s planting progress is crucial for monitoring. Subsurface temperatures are still below average in most of the corn belt, which could reduce yields as the weather prevents farmers from planting seeds in the soil. There’s talk of hotter, drier weather, something that could either be good or bad for yields. Unfortunately, farmers rarely get both good harvests and good prices.

Corn prices were trading at $ 5.73 a bushel for July delivery. July wheat traded at $ 6.52 and July soybeans at $ 14.21.

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