Risk Aversion Ahead of Elections

Posted on 03/09/2017 10:20 AM

Investors took a broad risk-averse approach to the markets this week amid growing uncertainty ahead of the Nov. 8 elections. Riskier assets such as stocks and many commodities faced price pressure, while safe-haven investments like bonds and gold strengthened. Much of the risk aversion came from polls showing Republican Donald Trump gaining on Democrat Hillary Clinton, as investors fear what a Trump victory could mean for foreign policy, trade relations and other key issues. Corn, soybean and wheat futures were pressured by the cautious pre-election trade, though we expect much of the focus in these markets to return to fundamentals unless there's a major market response after the election results are known.

Pro Farmer Editor Brian Grete highlights this week's Pro Farmer newsletter below:

Livestock markets were also pressured by the risk aversion and are more vulnerable to sustained outside influences since that could impact consumer attitudes and meat demand.

We take a closer look at the cattle market still searching for a low -- and much more -- in this week's Pro Farmer newsletter.

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