Checking the quotes on the CME after the weekend, I was surprised by the increase in prices of all grains. Soybean meal has “increased” over 10 usd/st depending on the month, soybean grain is in the “green” at 10.6 usd/st, while wheat and corn do not show such strong figures but have increased by approximately 3-5 usd/st. Concerns that rain will cause delays in harvesting, while at the same time limited stocks of old soybean grain will have to last longer, have prompted events on the CME.
As we approached the middle of the week, we were increasingly buzzing about the meeting of the American and Japanese central banks. Decisions on interest rates are made at these meetings, so many investors and speculators are waiting for the banks’ decisions to position themselves in the market and make important business decisions for the coming months.
Due to record wheat harvests worldwide, prices continue to fall
The two central banks are in opposite situations, so there is a possibility that they will make completely opposite decisions, which could result in large amounts of capital shifting from yen to dollar. The American central bank is gradually raising interest rates, while the Japanese central bank has been threatening further cuts to interest rates for months to weaken the overly strong yen. Both banks closely monitor the moves of other central banks and strive not to deviate too much from their policies to avoid causing major disruptions in financial markets. Given the current situation, the American central bank may once again keep interest rates at the same level. The Japanese central bank may announce a deliberate weakening of the currency or wait and hope that the yen will weaken based on American decisions.
