This is a sample entry from John Payne’s newsletter, This Week in Grain, published on Friday, October 10, 2014.
Welcome to the weekly wrap for the week of October 6th through the 10th. Watch the video below to hear my take on the WASDE and the other factors moving the markets this week.
Dollars gone wild is the theme of the week. The DX is trading in wide weekly ranges as the outside market forces take a toll in both directions. When the fed speaks, the dollar tanks and the high correlated equity/energy markets rally. When there is no news, the trend has been lower for almost everything priced in dollars. I have a feeling this volatility is just getting started as things will heat up with elections just around the corner and the US Fed and ECB policies changing.
One quick note on crude oil, this selloff is more than just fundamental. I feel this is a result of the sanctions we have put on Russia and ISIS disregarding the OPEC regs about prices. There is no better way to put a boot on the Russian economy than to bring crude prices lower. I don’t think you are going to hear the American public complaining. That said, if June futures drop below 80.00 per barrel, I’m taking a shot and buying.
The video breaks down the WASDE results, but I wanted to give you all the charts I put in the video. They focus on stocks to use. Please watch the video as they make more sense. All in all, it was a pretty neutral report, except for wheat. It was sneaky bullish. I compare it to a really fat guy beginning weight loss. Yes, were still heavy but the TREND is working the way the growers want.
THE CHARTS- WEEKLY FRONT MONTH
LINKS OF THE WEEK
- Expect “Seven Years of Lean” – Bill Gross
- Argentine government says will make soy producers sell more
- Unraveling the great Chinese corn seed spy ring
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