The grain futures and livestock futures trade must be watching the US and European Union free trade deal negotiations closely as US agricultural markets are under close scrutiny from the EU agricultural commission because of GMO crops, and hormone induced beef. Grain futures are trading mixed today with the soy-complex up, and corn and wheat lower at the Chicago Board of Trade and livestock futures up across the board at the Chicago Mercantile Exchange.
This Transatlantic Trade & Investment Partnership “deal” between the US and EU has the potential to cover one-third of world trade and involve nearly one-half of global GDP, but after 11 rounds of negotiating the “food and farming” aspect of the trade deal are proving to be the most bothersome. Its specifically US exports of beef and the EU’s need to have a “designation of origin” and the fact that US foods are grown as GMO’s.
“The European Union’s doubt’s about the safety of the US’s agricultural food products are with merit,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her fundamental assessment of the agricultural futures market. Levy added, “Not enough time has passed for full inspection and longer-term evaluation of these products. Even groups here in the US are skeptical of GMO’s.”
Currently livestock futures – both beef and pork futures – are in clear downtrends with some signs of bottoming action. Grain futures – the soy-complex, corn and wheat futures – had all been in downtrends, but the soy-complex appears to be in the early stages of an emerging uptrend.
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