Wednesday, March 16, 2011

Is The Commodities' Bubble Coming To An End ?


            Corn, Soybeans, Oats Finish Limit Down

Fundamentally, the crisis in Japan has changed nothing in regards to the need for agricultural commodities. Yet, they too participated in the bloodbath. Please consider the following chart.





Corn, Soybeans, Oats, and Canola all finished limit down. The fundamental need for grains did not change with the events in Japan, but the desire to speculate in commodities may have.

Whether this is the start of a lasting trend change remains to be seen, but arguably
most commodities are in a bubble.

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