Thought I would 'throw out' a general trading comment.
For many commodities, beans, bean oil, silver, coffee, some foreign currencies, are down a little. To me, this was expected. Why?
Last Friday marked cycle lows in these particular commodities. An old rule of thumb---a market will test a high/low 3 trading days thereafter. The 'drops' have not been too severe. May (NO GUARANTEE) be an opportunity.
Thanks much tjc!
You are somebody that follows more markets here than almost anybody and I greatly respect your valuable opinion.
I stick to just the ones that are affected by the weather(which coincide with many of your favorites).
WxFollower does the same thing.
I can't disagree with you but would say that the course COVID takes the rest of this year will be the biggest determining factor.
If the Delta version keeps increasing, it can affect demand for crude oil and natural gas. When energy prices plunge, it puts pressure on everything else and vice versa.
One factor is that transportation costs to move and deliver commodity products is part of the cost.
If gasoline prices go from $2 to $4 for instance, every food item in the grocery store cost much more to bring it to the market and that has to get dialed into the price.
So, if oil goes to $100 or back down to $50, it will be the biggest factor in the overall price of a basket of commodities.
What do you think?
https://www.columbiatribune.com/article/20120303/business/303039876