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Pulse Price Report: Market Predictions for 2017

 

After the typical short-term holiday boost in stock markets, the New Year marks another watershed moment in the momentum of the stock market.

Despite one of the worst stock market starts at the beginning of 2016, the end of the year has brought market highs with the Dow approaching 20,000 and a cautious optimism about 2017.

Many analysts expected moments like Brexit, where Britain voted to leave the European Union, and the rise of Donald Trump to keep a wet blanket on markets. They didn’t believe these events alone would hurt the economy, but they were unexpected by most, and markets typically don’t like surprises.

Many pros in the banking and finance industry have high hopes for 2017 under the promises of Trump to cut taxes, ease regulations and refocus government spending on domestic infrastructure. Since the jury is out on whether these promises will be fulfilled, most are calling for a highly volatile market in 2017 with the average still floating stronger than in 2016.

The Federal Reserve is another cloud of uncertainty hanging over the New Year markets. While the Federal Reserve hiked interest rates in December, for just the second time since the 2008 recession, and plans for at least two additional hikes in 2017, pressure from Trump may influence that agenda.

 

 

Crop prices (Dec. 27)

Rio Creek Feed Mill – Algoma

Commodity Price (per bushel) Basis
Corn $2.81 -0.65
New-Crop Corn $3.16 -0.6
Soybeans $9.07 -0.82
Soybeans $9.01 -0.80
Wheat (SRW) $2.98 -0.96
New-Crop Wheat (SRW) $3.41 -0.80

 

Fox River Valley Ethanol – Green Bay

Corn $2.88/bushel -0.58
New-Crop Corn $3.31/bushel -0.50

 

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: $2.29

United States one year ago: $2.00

Wisconsin: $2.31

Wisconsin one year ago: $1.93

Northern Door: $2.39

Sturgeon Bay: $2.35

 

Other Commodities

Gold: $1,140.00/troy ounce

Silver: $16.00/troy ounce

Oil: $53.85/barrel

 

Sources: aaa.com, agweb.com, gasbuddy.com, money.cnn.com, Business Insider, Reuters

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