By: Bob Utterback
, Farm Journal
Bob Utterback has more than 26 years of experience and offers producers a disciplined approach to marketing.
Ag commodities still follow outside markets
Dec 05, 2008
The pattern of the ag commodities following the lead of the equity market and oil continued today in a downward trend. The market broke hard today into new low ground across the board. We consider today’s activity a general long liquidation day with margin call losses as the dominate reason for the decline. It will be interesting to observe next week exactly how long the funds remain in the ag sector. I’m concerned this liquidation could continue to the end of the month. Granted, the market is getting down to some very attractive long term values, but right now there is nothing saying we are close to the bottom other than it’s been going down so long, that the bulls have been killed and the bears are no longer comfortable selling the market. So right now all I can suggest is everyone take a big step back, catch your breath and let the market volatility settle down a little before coming back into the market.
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