SubscribeDaily Futures Commentary COMMODITIES 030309
Tuesday, March 3, 2009
ENERGIES
The worsening global recession is leading to fear of less demand for crude oil. The market seems to think that another cut by OPEC in the middle of this month will not be enough to turn this market higher. Look for selling to come in on any rally.
METALS
The gold and silver markets sold off on day when traders were looking for safety. This could be a sign that traders are beginning to factor in the threat of deflation in commodity prices. If gold loses its appeal as a safe haven market then look out below. Margin calls in the stock market may also be a reason for the break in gold as traders are searching everywhere to get cash to answer the calls.
GRAINS
Soybeans and corn could trade higher today as trader aversion to risk is a little higher this morning. Any rally is likely to be short-covering as longer-term these markets are bearish. The strong Dollar is killing demand for U.S. grain at …
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