BOC & ECB Rate Cuts! – Morning Commodites Report from Allendale for July 5, 2012

Posted on July 5, 2012

The Peoples Bank of China and European Central Bank both cut interest rates today. If crop markets were not dealing with supply issues due to  summer drought conditions these rate cuts would be very bearish for crop markets. It is bearish for the equity markets as revenues and profit margins during the 3rd quarter will be negatively affected by these rate cuts.  I wrote a little about how this works in a recent article entitled Corporate Profits As Percent Of GDP Slumps First Time Since 2008, published at Seeking Alpha.

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