Price Report: Terrorism and Markets

Big global events typically have a strong effect on the global markets. The 2008 housing bubble burst in the United States brought the world economy to its knees. But terrorism doesn’t have quite the same effect. After the attacks in Brussels earlier this week, markets only rebounded a bit before recovering later in the same day as the attack. Brussels’ function as the de facto capital of the European Union did not seem to have the impact on European markets as many expected.

The French and German indices ended pretty much flat while the Dow was only down 41 points and the Nasdaq rose 0.3 percent.

The only losers in the markets were travel and leisure industries in Europe. Many European airlines ended the day down around four percent and American and other global companies, including Marriot, Royal Caribbean Cruises and TripAdvisor, ended the day down around two percent.

The hit on travel stocks is likely due to the immediate fear of another attack. People are less likely to book a flight in Europe the day after bombs exploded in a Brussels airport.

But a report from PNC Bank states that these effects typically fade within 10 days.

Meanwhile, safe-haven trades such as gold saw a slight bump following their demand during volatile times.

Crop prices (March 22)

Rio Creek Feed Mill – Algoma

Commodity Price (per bushel) Basis
Corn $3.24 -0.46
New-Crop Corn $3.38 -0.50
Soybeans $8.32 -0.70
New-Crop Soybeans $8.38 -0.76
Wheat (SRW) $4.01 -0.66
New-Crop Wheat (SRW) $4.03 -0.71

Fox River Valley Ethanol – Green Bay

Corn $3.39/bushel -0.31
New-Crop Corn $3.48/bushel -0.40

Basis: The difference between the local cash price for a commodity and the Chicago cash price (where the Board of Trade sets national futures price).

Gas Price Averages

United States: $1.98

United States one year ago: $2.42

Wisconsin: $1.98

Wisconsin one year ago: $2.45

Northern Door: $2.07

Sturgeon Bay: $2.00

Other Commodities

Gold: $1,247.60/troy ounce

Silver: $15.90/troy ounce

Oil: $41.34/barrel


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