GDP for Q4 2022 will come out on Thursday of this week; the consensus expectations is for 2.5 percent growth. But the question is what lies ahead for 2023? Consider, since Q3 2020, a huge increase in the M2money supply pulled the economy out of the Q2 COVID lockdown recession. That lead to growth, but it also lead to inflation in 2021 and 2022.
A good illustration of the inflationary impact comes from looking at the velocity of M2, i.e., how many times a dollar turns over in the economy per quarter. In 2019, one dollar would turnover between 1.4 and 1.45 times. Since COVID, the velocity ratio has been under 1.2 times. A good way to look at that is: with a higher supply of money and a lower velocity consumers are not buying more stuff, t...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
