Oct

7

Ag Commodities, from Jim Sogi

October 7, 2014 |

 Finally Ag Commodities are getting a little break after months of straight down. Coffee up 7%. What was the explanation? Strong dollar dampens ags exports. Note that the yen and Euro are getting a little bounce today too after both being in downtrends for months. They are really driving the yen down.  

Jeff Watson writes:

But the question remains…Is Dec corn going to break 3 and are Nov beans going to break 9? Commercial hedging companies sell and deliver if necessary. The selling pressure from hedging companies is a real headwind in your face, even in a bull market. While one has enjoyed a respite from the continual decline in prices, one wonders….has the form changed, is this a bottom, or is this a selling opportunity? For the past year if you sold into strength in the grains and held for a couple of days, you made a very serious return. That's been the form and one wonders if it's changed. I recently got faked out in the grains around an important price point, and left 40% of the money on the table had I cashed in on Friday. Oh well, things could be worse…I'm a terrible poker player, and Ceres is very stingy. 


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