Drought Imperils Crops and Mexico’s Rates Outlook

Drought Imperils Crops and Mexico’s Interest Rates Outlook By Blu Putnam, Chief Economist Norland, Senior Economist CME Group Drought Threatens Farmland In Dakotas Western U.S. drought is worsening, spreading toward Dakotas. Drought could damage corn and soybean crop yields, reduce production.  Drought driving up corn, soybean prices already elevated by Chinese demand. Water supply might be affected in … Read More

Inflation Roils Equities and Copper-S&P 500 Drivers

Inflation Roils Equities and Equities-Copper Relative Performance By Blu Putnam, Chief Economist Erik Norland, Senior Economist CME Group Conflicted Sentiment in Equities ​​​​​​Sentiment in equities is conflicted amid growing inflation debate. Expansionary fiscal, monetary policies fueling inflation concerns. Nasdaq growth stocks more impacted than Dow-listed companies. Bonds signal long-term rates might not far exceed Fed’s … Read More

The Volatility Cycle and Mexico Might Raise Rates

The Volatility Cycle and Mexico Might Raise Rates By Erik Norland, Senior Economist, CME Group End of the Volatility-Yield Curve Cycle? U.S. yield curve steepened slightly in 2021 but remains flat by historical standards. Flat yield curve at the start of growth cycle could be due to quantitative easing. Yield curve could steepen amid growing … Read More

Upcoming Webinar: The Rise of Crypto Derivatives

The Rise of Crypto Derivatives CME Group, in collaboration with The Block, invites you to attend a webinar on Thursday, May 20 about the recent growth in demand for crypto risk management solutions as the market continues to see notable price action. Join us to hear from a panel of industry experts, including Tim McCourt, … Read More

Inflation Signals from Commodities and Growing Household Wealth

Inflation Signals and Household Wealth By Blu Putnam, Chief Economist Erik Norland, Senior Economist CME Group What Are Commodities Signaling About Inflation? ​​Prices for commodities like lumber, corn and soybeans are surging. The gains have lifted inflation expectations to their highest level since 2013. But these markets are in backwardation, where future prices are relatively lower. … Read More