European political, economic developments continue to cast shadows

Developments in Europe are continuing to have an impact on the global economy and, thus, the outlook for the U.S. rice, cotton and grain markets.

Mortgage-backed securities once again have “reared their ugly heads,” leading to questions about an ongoing U.S. Justice Department investigation of German-based Deutsche Bank. Reports the Justice Department is seeking penalties of $14 billion have added fuel to the fire.

The United Kingdom’s initial steps toward exiting the European Union are also raising questions along with increased aggressiveness by the U.S. Federal Reserve in rolling out increased economic stimulus measures.

“Given the above factors over the next one to three months it’s a little challenging to see many positives for rice, cotton, and grain prices, so we most likely will finish a bottoming process over the next one to three months, before prices advance,” says Dr. Bobby Coats, professor of agricultural economics and Agribusiness at the University of Arkansas System Division of Agriculture.

“Oil price expectations this year have been elusive. We seem to be working toward a West Texas Intermediate trading range of $40 to $60 per barrel. Presently, if oil pushed above $52, there is a potential for $60 before oil prices likely revisit the $40 area.”

For more on Dr. Coats views on the world global outlook, visit

Also see the accompanying charts of current economic indicators:

Chart Book Index – Link

Weekly Chart, September 2013 – October 7, 2016

  • Chart 1. Deutsche Bank
  • Chart 2. Credit Swiss Group
  • Chart 3. HSBC Holdings PLC
  • Chart 4. Wells Fargo & Co.
  • Chart 5. Bank of America
  • Chart 6. Citigroup, Inc.
  • Chart 7. J.P. Morgan Chase & Company
  • Chart 8. Soybeans
  • Chart 9. Corn
  • Chart 10. Rice
  • Chart 11. Cotton
  • Chart 12. Wheat
  • Chart 13. Copper
  • Chart 14. $WTIC
  • Chart 15. 10-Year US Treasury Yield