Futures File: Overabundance of meat, tariffs spoil prices

On Friday morning, the U.S. Department of Agriculture released its newest estimate of the size of this year's crops. Despite some weather concerns, the USDA raised its projections for corn and soybeans, which sent markets tumbling.

By mid-session, harvest prices for corn and soybeans had fallen to two-week lows, trading for $3.75 and $8.67 per bushel, respectively.

Expectations for large crops, fewer exports and a troubled livestock industry could keep prices in a malaise for the foreseeable future.

Turkey spoils, contagion threatened

The Turkish currency, the lira, is in a downward spiral, collapsing in value by almost 40 percent so far this year, with half of that loss coming this week.

The U.S. is pressuring Turkey with sanctions and tariffs over a series of political and economic issues. This has some political strategists worrying that this could push Turkey, a NATO ally, into the arms of Russia.

Meanwhile, economists are growing increasingly concerned that Turkey's economic woes could harm European banks that are heavily invested in the developing country, spreading the economic contagion to European economies. As a result, the euro currency collapsed below $1.14 on Friday, the lowest level in over a year.

Opinions are solely the writers'. Walt and Alex Breitinger are commodity futures brokers with Paragon Investments in Silver Lake, Kansas. They can be reached at 800-411-3888 or www.paragoninvestments.com. This is not a solicitation of any order to buy or sell any market.

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