"Sell America" Trade is Back After Credit Downgrade - Grain Implications?
"Sell America" Trade is Back After Credit Downgrade - Grain Implications?  
Podcast: Grain Markets and Other Stuff
Published On: Mon May 19 2025
Description: Joe's Premium Subscription: www.standardgrain.comGrain Markets and Other Stuff Links-Apple PodcastsSpotifyTikTokYouTubeFutures and options trading involves risk of loss and is not suitable for everyone.0:00 US Downgrade2:53 Corn Price Action4:42 US Weather7:48 Argentina Flooding9:14 The Funds11:04 India and Ethanol📉 US Credit Downgrade Sparks Market Jitters 🇺🇸💥Moody's has officially downgraded the US credit rating to Aa1, stripping the nation of its final triple-A from any major agency. The move was driven by rising deficits, ballooning interest costs, and a lack of fiscal discipline. While not expected to spark immediate chaos, the downgrade could slowly increase borrowing costs.💬 Meanwhile, the "Sell America" trade is back:📉 Stocks ⬇️📉 Bonds ⬇️ (rates ⬆️)💵 Dollar ⬇️🌎 Only 11 countries now hold a triple-A rating from Moody’s.🌽 Corn Market MovesCorn futures slid 5¢ on Friday, with good weather and fast planting keeping prices under pressure. Over 60% of US corn is in the ground, ahead of average. But exports are strong—second best in 10 years!🌦️ Radar WatchStorms are lighting up the Corn Belt! 🌩️ Rainfall expected in:• ND, SD, IA, MO• Heaviest rain: southern IA, northern MO, southern IL & IN, western KY🌧️ Moisture could boost crop development in dry spots.🇦🇷 Argentina FloodingToo much of a good thing? Parts of Buenos Aires saw 6–10 inches of rain! 🌊 Soy harvest delays continue, and sales have dropped to decade-lows.• Soybean meal ⬇️• Soybean oil ⬆️ (after recent plunge)📊 Fund Positioning• Corn: Biggest short since Oct '24• SRW Wheat: Most short since Nov '23• Soybeans: Funds were light buyers last week🌍 US-India Ethanol TalksThe US wants India to open its market to fuel-grade ethanol. But India’s pushing domestic production and is cautious of foreign suppliers flooding the market. 🇮🇳⛽👉 Subscribe for daily ag + macro updates! Drop your thoughts in the comments 💬#GrainMarkets #USCreditDowngrade #Corn #Soybeans #Moody's #Argentina #Ethanol #Commodities #AgNews 🌾💰📉