Carley Garner, Senior Strategist and Broker at Decarley Trading, explains the report’s affect on the market.
Full Transcript:
Caroline Woods: So Carley, we saw PPI coming in hotter than expected for July. The stock market initially sold off, but has already reversed course and pretty much bounced back. What did you see in terms of reaction from the commodities markets.
Carley Garner: Yeah, actually, given the magnitude of the number, I think it was a pretty muted response. I think the market’s kind of been bracing for this sort of thing. You know with the tariffs, we were just kind of waiting for some sort of uptick. Now the debate is this something that continues or is this just kind of a one time or temporary price shift. You know, that’s yet to be determined, but it was actually not a massive response. What I can say is the commodity markets in general, there’s a few outliers, but most commodity markets are actually behaving deflationary, not inflationary. And what I mean by that is if you look at the grains like corn, soybeans, wheat, we are trading near multiyear lows. If you look at a market like coffee, coffee is relatively expensive historically, but we’ve come off from wildly high prices. And we’ve come off quite a bit. For example, coming into the year, coffee was around $4.20 and now we’re trading in the $3.00 area. We’ve been as low as the $2.60, $2.70 area. So commodities in general are behaving deflationary. Now, you know, the jury’s still out on whether this continues. But time will tell.
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