Darin Newsom
11 min read
Today, I joined Michelle Rook on AgWeb's Markets Now to discuss the latest in corn, soybean, and wheat markets. I also covered oil, gold, interest rates, and the US dollar. You can watch the full interview HERE.
Michelle Rook: Welcome to Markets Now. I'm Michelle Rook with Darin Newsom, Senior Market Analyst for Barchart. Well, we're seeing some mixed trade in a quiet session in the grains, livestock. At least the cattle market is lower this morning. On the outside market front, crude oil's up, the Dow is down, or the stock market and indices are down. Darin, some of that has to do with some of this unrest in the Middle East. Let's talk first of all about crude oil. Where do these energy markets go here with these Middle East tensions rising, do you think?
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Darin Newsom: Yes, theoretically, this should continue to provide support. We certainly saw it late last week, and then we saw it back off a little bit on Monday. There's going to be this undercurrent of support anytime you get this unease, increased violence, whatever we want to call it, but the big thing is countries lobbying missiles back and forth at each other.
You're going to continue to see this undercurrent of support, even if it's just coming from the non-commercial side, because if we look at the spreads, we know that West Texas Intermediate crude oil spreads have been in backwardation or inverted for months at a time now, probably over a year now. It just continues to indicate there's a tighter supply and demand situation domestically. It's just that it hasn't changed all that much. It puts an asterisk by it when we see it inverted. Is it more or less than what it used to be?
There's just undercurrent of support right now. It looks like buying's probably coming from both sides, predominantly the fun side. This will continue as long as the headlines continue to scream about missiles being launched, particularly if this thing starts to expand, if the violence starts to expand.
Michelle: The other markets that have reacted, let's talk about gold, which has been hitting record highs, and the dollar index. They're tied together here, aren't they?
