March 8th Update

This week we saw most of the food commodities pull back sharply, while the energy complex and the metals continued to move up. Looks like the hedge funds decided to sell and take some profits in the food commodities! I think we will eventually see more upside in wheat prices though.

Grains

Wheat prices are holding near the $11 level after pulling back from their high. Corn pulled back a bit while Soybeans lost a lot of ground. We get another monthly crop report next week.

Softs

Sugar lost a lot of ground as well. Cotton and Coffee spiked up then pulled back like most of the others.

Energy

Oil crossed over $106 this week, Natural Gas hit $10, and Heating Oil continued to rise.

Metals

Gold continues to hit new highs as the US Dollar weakens -we could see $1000 soon, then maybe a pullback. We also saw a rise in Silver, Copper, and Aluminum.

Bonds

The 10 yr Note rose this week, maybe reflecting a flight to quality as the stock market retreated, however the 30 yr Bond pulled back -it's been a crazy market!

Currencies

The Euro continued to go higher this week, surpassing $1.54.
The Yen broke down (inverse chart), correlating with the decline in the US stock market. I expect a bounce in the Yen and the equity markets soon.
The US Dollar continued to fall to multi-decade lows.

Stocks fell again this week. See my Stock Market Blog for more details.

Note: Charts are 'live' so comments above refer to the appropriate time on the chart.

News Stories:
Rising costs move down the food chain
Wheat shortage gets bakers right in the bread basket
Grains join ranks of high-stakes futures gambles
Soybeans, Corn Fall After Brazil Crop Forecast; Wheat Declines