Futures brokers and futures speculators may be in for a wild ride this new year if this week is any indication of the year. Friday was a wild ride in the grains, we had corn “limit up” from open at the CBOT and soybeans were touching with limits shortly after. Wheat had the most bearish news of them all in the USDA Grain Report on Friday, it was a “limit up” for most of the late day trading. Corn was the most solid never moving off limit all day. It finished the day at $4.95 a bushel coming real close to that $5.00 mark. If corn does another “limit up” move on Monday it looks like we may even see a much larger increase going into the spring, until the final acreage as been assumed. If not will probably consolidate somewhere in the $4.75 to $5.10 range until South America comes in to secure numbers. Soybeans and soybean complexes are all in a strong Bull Market. “Beans In The Teens” from my previous post was there for a short time on Friday will have to see if the follow through comes on Monday. The soybean oil sure is being pushed not only by the soybeans itself but with crude still trading above $90.00 keeps it strong. Soybean meal is looking like it may want to start taking the lead again in that complex.
Now for Gold Futures Brokers and Gold speculators with all the “Credit Crunch” still going on, and the investors still fleeing that stock market we may see $950.00/ounce by bulls end. Spot gold at a high of $895.80 and front month futures (February) at an alarming $900.10, if we get a close above the magical number $900.00 it will be the train to $950.00. Most personal investors are still seeking gold for their portfolios. Futures brokers should be answering phones like mad in the upcoming months as personal investors seek other avenues, other than holding the actual gold itself. If no close above $900.00 and the indexes start to rebound of their 2008 yearly lows we may see it testing that $850.00-$800.00/ounce mark again in the near future. Like anything else, “what goes up must come down” in order to go back up again.
The markets to be watching this “February Break” will more than likely be the meats. Another words the “seasonal trading” of Cattle and Hogs. Out of the past years it has been sell cattle and buy the hogs. This year may hold true again but with the over supply of front month hogs you might want to look at April or June. That is the end of my weekly recap, and remember
