rounded corner
rounded corner
top border

Paragon Investments' Futures File: Stocks, Silver & Wheat Drop


Bookmark and Share
Washington Woes Weigh on Stocks

After reaching all-time highs on Thursday, stock market futures plunged on Friday morning on fears of problems in Washington, D.C.

On Thursday night, the Republican tax overhaul plan was put into limbo as projections for higher budget deficits and wavering votes threatened to prevent passage of the legislation.

More shocking was news that broke Friday morning that Michael Flynn, the former National Security Advisor to President Trump, was pleading guilty to charges of lying to the FBI regarding conversations with Russias ambassador. Flynn is now cooperating with special counsel Robert Muellers investigation, which has prompted speculation that Flynn could expose others in the Trump orbit to new charges.

Concerns about threats to the administration, tax plan, and overall stability in Washington spooked the Dow lower by over 300 points at one point Friday morning. Prices rebounded into Friday afternoon after Senate Majority Leader Mitch McConnel stated that the Senate had sufficient votes to pass tax legislation, although there are numerous hurdles remaining before the plan becomes law.

Silver Sinks

Silver prices plummeted this week, approaching $16 per ounce for the first time since August. Prices fell on Wednesday as investors dumped metals in favor of stocks. Expectations for higher interest rates in the coming months also hurt demand for precious metals, as higher interest rates typically make investments in CDs and bonds more lucrative than holding onto metal that doesnt pay interest.

To others, the drop is presenting a buying opportunity, as silver has rarely been underneath $16 per ounce during the last two years, and silver should benefit from the problems in Washington.

Wheat Market Withers

Wheat prices drilled into new lows this week, with prices for Chicago and Kansas City wheat futures nearing $4.00 per bushel. The market lost ground as foreign competitors, like Russia and Australia, undercut American wheat sales.

Adding to Midwestern farmers concerns are weather forecasts for a dry and cold winter in many wheat-growing areas. If the dormant wheat crop is damaged over the winter, it could cut into the spring harvest. While this would be detrimental to affected farmers, these threats could provide a much-needed spark to boost wheat prices as well.

By the end of the week, grain prices rebounded, with corn, wheat, and soybeans closing strong on Friday afternoon.



Recent articles from this author



About the author


With a degree in Grain Science / Management from Kansas State University, Mr. Haverkamp has worked directly with and for several corporations in research, logistics, and origination of commodity products. Among these are Continental Grain, Kansas Wheat Commission, National Livestock Association, Kice Industries, and Land 'O Lakes. Mr. Haverkamp is a regular guest analyst on both radio and television programs throughout the Midwest and also provides fundamental and technical research for Bloomberg, DTN, Dow Jones, The Wall St. Journal, CNN and CNBC as well as several other local and regional news syndicates. Mr. Haverkamp sat on the board of directors for the NIBA (National Introducing Brokers Association) in Chicago for five years and on the National Futures Association's nominating committee for one year. Mr. Haverkamp began trading in 1987 and founded Paragon Investments in 1996. 

  Mr. Haverkamp continues to provide consulting services for individual investors, livestock operations, grain processors, and individual producers as well as holding the title of CEO for Paragon.

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2018 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Legal  •   Privacy Statement