Interesting commodity markets today.

[Tandalayo_Scheisskopf]

Across the board, energy and foodstuffs prices are declining. Anyone want to hazard a guess as to why this is occurring?

[TexasObserver]

1. US is sending someone to attend a nuclear conference with Iran

That seems to indicate less sabre rattling, and less of a chance for war with Iran.

That's my theory, although I haven't heard anyone else give such an opinion yet.

[Tandalayo_Scheisskopf]

5. That's a good suggestion n/t

[HereSince1628]

2. Trying not to kill the goose that lays the golden egg?

I give up...what's the correct answer?

[ProdigalJunkMail]

3. oil and petrol futures are declining sharply

for the second day in a row...could be having a halo effect...

sP

[NMDemDist2]

4. the deflation is starting...

:scared:

http://en.wikipedia.org/wiki/Deflation

[slackmaster]

6. Anticipation of a broad-based decline in the economy, probably

And world peace.

[formercia]

7. Junior lifted the offshore drilling ban.

the thought that 15 years from now, we might get enough oil off of the beaches that everyone with a mop and a bucket could get into the action. The realization of the traders that oil might be had for free, totally unnerved them and they began dumping contracts. I think I'll go take a red pill......

[Indenturedebtor]

8. Congress would have to lift the ban too don't worry

Well actually worry... they do what Bush says because their complicit on Tuesday and cowards on Wednesday.

[formercia]

11. So, I can wait to buy my mop and bucket?

Shucks, and there I was getting in at the beginning. Now, all I have to do is figure a way to convert abandoned condos into storage tanks without ruining the character of the neighborhood.

[Indenturedebtor]

14. Lol we'll see. Harry and Nancy may decide that this is the Wussy issue of the week n/t

[formercia]

16. in the mean time I'll apply for concession permits

to sell tar remover and paper towels.

Make a law, make a business.


Satire in its worst form.

[Indenturedebtor]

18. Hah true but it is pretty funny n/t

[Bonhomme Richard]

9. Simple. Attention is beginning to be focused on speculators.

No different when gas prices (before repug total control of government) would drop as soon as congress mentioned looking into the increases.

[Warpy]

10. Banks need cash for their balance sheets

so they're dumping futures as fast as they can.

This started yesterday. Now other people are spooked and dumping their futures.

[Champion Jack]

13. yup

[Tandalayo_Scheisskopf]

15. Good answer.

I was wondering when that would start. I also think that under those circumstances, those "other people" might want to assess their present positions, post-haste.


I personally think it has a way to go down. Too many people were out there talking about how the sky's the limit with petroleum. Once I start hearing that, I figure the end is nigh.

[unblock]

12. people are more pessimistic about the economy and predicting a decrease in demand

that and the fact that it's hard to read much into one- or two- day movements, even if sizeable. prices have been volatile and that doesn't always mean up.

[Tandalayo_Scheisskopf]

17. Well, the demand decrease...

Has gone beyond the predicting stage. There has been a lot of reports about decreased Gasoline demand.

[aspergris]

19. among other reasons

Because
1) they were overbought
2) key supports were broken

I traded some corn futures this morning.

Shorting into strength has been THE call.

Corn is NOw near support. Inflection point at least. Where it goes from here is anybody's guess

[Tandalayo_Scheisskopf]

20. Post something here, after you have had you cocktails...

At the end of the day, about your impressions from today.

Sir, you are a far more important asset here than you know.

Oh, and where is the next oil support? I am guessing here: $130?

[aspergris]

21. I can post an oil chart

showing support and resistance.

How do I add a picture file to a post?

In brief, resistance on the front month (QMQ8) is 140. Above THAT, is the all time high

Supports are 130, 121, and 110

It's a pretty clear stairstep on the way up which offers nice levels to lean against

[Tandalayo_Scheisskopf]

22. Best way to add a picture file:

I will PM it to you.

Otherwise, Join up on Flickr or Photobucket or any of those other online picture services, upload it there, and post the link to it in your message here.

But wait for my PM before you make your decision.

[Andy Canuck]

23. My guess is that it is a reprieve.

A blowing off of stress, the idea that Fannie and Freddie have been dealt with effectively, (but the housing crisis has been abated for a while: days and/or weeks) Also the US posted an oil surplus.

The US`s Iran delegation sounded more like an ultimatum team, than a negotiation group. In fact it sent chills down my spine that they are sending the big wigs.