11/07/25 Afternoon CommStock Report – Traders Talking About The Big Short Again

The soybean rally sputtered on Tuesday and Thursday this week at the same time that the stock market was selling off. Immediate points of alarm for equity investors included the pending impacts of the Supreme Court hearing on the validity of President Trumps tariff authority, which overlaps with soy traders awaiting confirmation of follow-through or lack thereof on Chinese export purchases. All industries are left susceptible to tariff decision ramifications that could include a mess of lawsuits over tariff refunds. Striking down the specific tariff authority being tested diminishes the basis of prior trade deals, but it sets up a likely quick replacement of new tariffs under alternative legal powers, prompting another web of court cases to follow.   Adding to attention on tariffs and the government shutdown, two other storylines were raising interest for threatening to destabilize financial markets – cracks showing up in the commercial credit market and fears about artificial intelligence causing structural unemployment to rise. These stories leave a person hoping that the stock market nervousness expressed this week was not foreshadowing a worse panic where the public hears a lot more about ‘receivables factoring’ or worse, ‘the AI bubble.’   Receivables factoring is the business…