Macro: Relief Meets Reality July’s CPI report matched expectations. Headline inflation eased to 3.4 percent year over year, while core inflation declined to 2.5 percent. On a monthly basis, headline CPI rose 0.1 percent and core increased 0.2 percent. Equities and the U.S. dollar traded higher following the release, while odds of a September rate hike continue to fall. The report offered short-term relief, but inflation remains sticky. Services inflation excluding energy is still 3.0 percent above year-ago levels, and today’s data does not fully reflect the recent rebound in energy prices. If crude oil remains elevated, next month’s inflation reading could strengthen the case for the Fed to act.
Global Trade: Two Chokepoi...
Key Takeaways: Corn yield came in below expectations at 180.7 bushels per acre, validating WPI’s view that last year’s exceptional yield may have anchored analyst estimates higher. Despite slightly higher production for corn, stronger export projections tightened the balance sheet,...
