USDA Report Smacks the Market – Jonathan Driedger, FarmLink
This week the USDA report really smacked the commodity market into a downward spiral on Wednesday. Most people said that the negative reaction was an over reaction but still it does wake some farmers up to the potential downward snap that this market can take. As Jon Driedger, FarmLiunk Marketing discusses below, this is great evidence of what happens when hedge fund money aggressively starts selling their long positions in agriculture commodities. Farmers love hedge fund money on the way up but you do need to be aware of the downside risk at all times as Wednesday proved.
Jon Driedger joined me via Skype from his Winnipeg office to discuss the report and provide a little clarity on the summer months ahead for Western Canada and Ontario farmers. Is this the beginning of the end of the bull or do short ending stocks provide too much fundamental strength?
If you cannot see the embedded video below click here.