Grains

The USDA's August report is relatively neutral for corn and wheat, while negative for soybeans. Grain prices have adjusted due to favorable weather conditions in the U.S. Midwest and lower demand for corn, soybeans, and wheat compared to the tightening of U.S. ending stocks. Additionally, the rise in the U.S. dollar and lower energy prices have also contributed to the adjustment in commodity prices. China continues to have a significant impact on soybean and soybean oil prices. The situation with Ukraine's exports has also increased volatility in corn and wheat prices. Moreover, increased supply from Indonesia and Malaysia, along with decreased demand from China, has led to fluctuations in global vegetable oil prices.

Stock Index Futures

Stock index futures reached a four-month high in August despite discussions among Federal Reserve (FED) officials about a faster rate hike timeline for the year. Comments from FED officials have remained quite "hawkish" recently, even though inflation rates (measured through CPI and PPI) may have peaked. Some policymakers have indicated that a shift towards a more "dovish" policy is unlikely.

U.S. Dollar Index

The U.S. Dollar Index reached a 20-year high in mid-July as differing expectations about interest rates drove the greenback (U.S. dollar) higher. The main reason for the dollar's rise is the FED officials' willingness to take more aggressive steps to control inflation, as most inflation measures have risen hotter than expected.

Crude Oil

Crude oil prices peaked in early June before falling from $115 per barrel to nearly $85 per barrel, the lowest in three months. This drop was primarily due to weaker global demand. Additionally, the market experienced a sharp decline due to the weakening housing market in the U.S. and forecasts from some economists suggesting it as a sign of a recession.

Gold

Gold futures have trended higher since mid-July as some fundamental factors have improved. The U.S. dollar has moved away from its peak. However, recent gains have been limited as FED officials have increased their "hawkish" stance.