Commodity Market Thoughts

Commodity Market Thoughts

  • Cattle’s looking good – I’m keeping an eye on the Feeder market also. Wish I still had all my Live Cattle contracts, but oh well – looking to add on a new breakout.

  • Pork bellies are not looking good – same article linked above mentions too much supply on the market.

  • Quite a breakout by gold and silver over the past few days. Silver looks particularly intriguing, as it has a compelling supply/demand story also. I believe both are sitting right around their 50-day moving averages.

  • All the commodity currencies are rallying quite strong. Will be interesting to see if the Aussie dollar can stay strong if the market turns down. I personally think there will be some short term panic selling, which will also drive the Japanese Yen and the Swiss Franc up.

  • Sugar, as our buddy Toby said once, is acting like a giant turd. Too much supply on the market, it appears. Long term it’s going much higher – until then, probably best to wait.

  • Coffee is looking strong also. I’m going to sit back and wait on this one – coffee head fakes more often than #24.

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