04/15/2024 Macro-Economics and Weekend War Escalation Dominate Market Jitters

On the Grains Grains are modestly lower in overnight trade as macro-economic and geopolitical tensions are twin fountains of uncertainty to start the week. Grains managed to close higher Friday despite another massive slide in the stock market tied to resurgent inflation worries and sagging hopes of interest rate relief. The June contract for the DJIA broke through important support at 38,400 in place since last December. It’s also now oversold and further downside will hopefully be limited to completion of a 62% retracement of the entire move up from December lows to the double top at about 40,300. Then over the weekend, the world witnessed Iran’s blatant escalation of Mideast conflict by launching hundreds of drones, ballistic missiles and about 30 cruise missiles towards Israel. Nearly all were intercepted and destroyed by combined forces of Israel, the U.S., the UK, France and even Jordanian air support before they entered Israeli airspace. The UN Security Council met in emergency session Sunday to urge both sides to stand down. There was fear oil prices could soar if this raised odds of assault on Iran’s oil export capacities, but so far, that hasn’t happened. The attack was widely telegraphed and oil prices…