On Thursday the market learned that Santa isn’t real and is digging its heels in the ground.
Remember when you learned that Santa wasn’t real? Your parents still got you presents and you still had Christmas, but there was a sense of excitement that was never going to be the same about the Christmas holiday. Thursday was the day the market learned that Santa wasn’t real. Wednesday the phase one trade agreement was signed but there wasn’t enough time for the factual components of the agreement to set in.
Now the U.S. and China signed the agreement and agricultural products are going to be sought out from China more so than they have been in years, but the market didn’t jump limit up, cash prices didn’t soar and we don’t know on when China is going to be making their purchases. Just like kids need a day or two to absorb the Santa shock, the market needs its time to understand the agreement’s role. Christmas still rocks, and the phase one trade agreement is still a blessing, change just takes time understanding and coming to terms with.
Hog prices are lower on the National Direct Afternoon Hog Report, down $0.56 with a weighted average of $51.18.
March corn is down 12 cents per bushel and March soybean meal is up $0.50. The Dow Jones Industrial Average is up 267.42 points and NASDAQ is up 98.43 points.