How are the global grain and oilseed markets faring after the US election?

Published 2024년 11월 7일

Tridge summary

Following Donald Trump's re-election as US president, grain markets initially declined but later rebounded due to expectations of economic growth from his policies. Concerns about potential trade disputes, particularly with China, arose due to Trump's tariff promises. The dollar's surge impacted US export prices, yet optimism about economic growth led to a recovery in commodities and stock markets. Corn and wheat futures in Chicago and Paris experienced gains, while soybeans remained at risk due to trade war fears. Paris rapeseed and Winnipeg canola futures increased on speculation of higher demand for Canadian canola oil.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Grain markets bounced back after an initial drop following Donald Trump’s re-election as US president, with expectations that his policies might boost economic growth. Initially, grain and other commodities fell on news of his win. Trump is viewed as likely to kick off disputes with major trade partners. His first term in office was marked by a trade war with China, the leading ag importer. Trump's pledges to impose 10-60% tariffs on US exports raised fears of retaliatory action, according to yesterday's grains and oilseeds report from CRM Agri. The dollar surged post-election result, driven by expectations that additional Trump’s policies, such as tax cuts and reduced immigration, could lead to higher US inflation, lowering the chance of interest rate cuts. Given that a strong dollar makes US exports more expensive, the Bcom commodities index initially dropped 2.2%. However, it later trimmed losses to 0.8%, as optimism about economic growth and corporate profits drew investors ...

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