Today's price action claims that interest rates will be going up, sooner rather than later, but no sooner than yesterday.
And it claims wheat very likely is ready to go down. I will sell any price below 707 basis March.
Corn and beans may recover, but it seems unlikely.
Gold, silver and the stock market had rather sickly performances today, at least combined with Friday's bust. I'm not ready to call them bear markets, but let's say the bulls look like they swallowed something that's not good for them.
Finally, crude had rather a poor day. I think $88/bbl for crude is too high -- but the market really doesn't care what I think. After hanging out at $88/bbl for a week, prices went to 85 Friday, tried to rally today but couldn't. Like everyone else who is not working for an oil company, I prefer $70 oil to $80 to say nothing of $88. But as long as the players think China will burn a bunch to supply cheap goods to the West, they will bid the prices up. In case we have forgotten, that $140/bbl oil of the last year of the Bush administration was entirely caused by big funds buying and holding, and using banks to circumvent the limits on how much they were allowed to hold. (The value-in-use analysis by the Saudis among others, put the value at about $80.)The CFTC, the SEC and the Fed should have lowered the boom on the banks. Had Bush -- or more properly, Cheney -- insisted on enforcement, we would not have had such a severe depression as we have had (because the banks, well-chastened, would not have engaged in the shady, shady as in dark gray, tricks to increase bonuses which eventually you and I paid for. Instead, President Cheney (he was president, wasn't he????) insisted on non-enforcement. We all know how well that worked.
Today's across the board selling came late in the day when stocks were unable to hold their gains. Interesting how unrelated products -- stocks and grains -- can get caught by the psychology of just one, stocks, no?
Hog & Corn Comments – 11/15/10 China rumors reverse Friday’s corn action
China Makes Plans For A Big Purchase Of Corn...Prices Higher!