http://www.mgex.com/asktheanalyst.html
an excerpt;
Unfortunately, the wheat markets are going to remain followers of the stock indices. I fear that this is going to continue until we see a confirmation of the stock market bottoming out and stabilization of the economy. A factor that could limit the influence of stock indices on the wheat futures is the fact that staple commodities are relatively inelastic which will help the market revert back to trading on their own merits. Another factor is the amount of liquidity that has been pumped into the economy. At some point, probably in the last half of next year, this liquidity should create a very inflationary scenario as a portion of that liquidity will be invested in staple commodities. The market will need this type of buying to sustain a major rally, especially if supply is not an issue.
an excerpt;
Unfortunately, the wheat markets are going to remain followers of the stock indices. I fear that this is going to continue until we see a confirmation of the stock market bottoming out and stabilization of the economy. A factor that could limit the influence of stock indices on the wheat futures is the fact that staple commodities are relatively inelastic which will help the market revert back to trading on their own merits. Another factor is the amount of liquidity that has been pumped into the economy. At some point, probably in the last half of next year, this liquidity should create a very inflationary scenario as a portion of that liquidity will be invested in staple commodities. The market will need this type of buying to sustain a major rally, especially if supply is not an issue.
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