Commodities Continue Surging Higher

So Europe is fixed again right?  Because if it is that means there won’t be a debt default whirlwind *cough* that will have to be papered over by all of the central banks and the rising equity and commodity markets are a result of happy days truly being here again. That’s why the EURUSD rebounded re-tracing all of yesterday’s loss while the chart looks like the telemetry of James May’s throttle usage or Mitt Romney’s lie detector results when asked a direct question about anything.

Right, and I’m secretly married to Jennifer Love Hewitt.

West Texas Intermediate Crude prices stormed the Bastille again today attacking but not breaching the $103 wall before settling back to consolidate around $102.50 per barrel.  Brent Crude up another $1.58 to close at $118,93 after setting a record as priced in euros yesterday.  It backed off that lofty level but only $0.30.

Cattle prices continue to flirt with the $130 level per contract.  Lean hog contracts surged $1.32 to close at $90.21.  In the grain complex Corn regained yesterday’s losses, tracking with the price of the euro, while other grains continue to consolidate.  Rough Rice, which has been trading in a band between $13.50 and $15.00, closed at $14.27 on Thursday, while the Wheat chart continues to have seizures.

Gold rebounded to recapture the $1730 per ounce level while Silver also roared back refusing to yield a daily candle below the $33 level as it continues building a base between $32 and $35 per ounce.

The commodity complex in general is responding to the massive amount of liquidity being pumped into the system through central bank swap arrangements and outright monetization of bond issues.

 

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Tom Luongo

About Tom Luongo

Tom Luongo is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.

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