There was some pullback this past week, but StoneX Chief Commodities Economist Arlan Suderman said the 10-year Treasury notes are close to five percent and still trending higher. “A lot of it is based on the increased debt certificates that are being offered onto the market with a decreased supply of buyers of those debt certificates and that’s largely a factor of Congress borrowing more and more money and the Fed purchasing fewer of those debt certificates,” said Suderman. “We have to attract new buyers and you do that with higher yields.” Suderman said these economic trends impact the farmer. “Higher interest rates increase the costs for the agricultural producer to produce the crop to pay for that operating loan and it also increases the cost of storage.”
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